ExxonMobil uses natural resources such as reserves of petroleum to produce its goods and services.What is likely to happen to the value of these resources?
A)It will remain constant, because natural resources are created by natural forces and don't respond to market forces.
B)It will fall with increased demand and rise with increased supply.
C)It will rise with decreased demand but remain steady when supply falls.
D)It will rise with either an increase in demand or with a decrease in supply.

Question

Quizplus · Accepted Answer

The value of natural resources such as petroleum reserves is greatly impacted by market forces, specifically supply and demand. When demand for petroleum increases, the value of existing reserves will also increase. Conversely, when supply decreases, the value of existing reserves will also increase. Therefore, the value of these resources will rise with either an increase in demand or a decrease in supply.

ExxonMobil Uses Natural Resources Such as Reserves of Petroleum to Produce