Changes in the price of resources do not help determine supply because those resources can be replaced by substitute goods.

Question

Quizplus · Accepted Answer

Changes in the price of resources can affect the supply of goods that heavily rely on those resources. If the price of a certain resource increases, it could become more expensive to produce certain goods which could result in a decrease in supply. However, in some cases, suppliers may be able to find substitute goods to replace the original resource which would not impact the supply.

Changes in the Price of Resources Do Not Help Determine