The most important determinant of resource prices is:
A)social customs
B)intervention by governments
C)the interaction of demand and supply
D)intervention by labour unions
E)intervention by landowners

Question

Quizplus · Accepted Answer

The interaction of demand and supply is the primary determinant of resource prices. When demand for a resource exceeds supply, prices increase, and when supply exceeds demand, prices decrease. Other factors such as social customs, government intervention, labour unions, and landowners can also influence resource prices, but they are secondary to the basic supply and demand dynamics.

The Most Important Determinant of Resource Prices Is