As far as prices are concerned, environmentalists believe prices should
A) be based on the cost of materials used to manufacture the product.
B) reflect the direct cost as well as the cost of air, water, and soil used.
C) be determined by the supply and demand of products in the marketplace.
D) include a large tax to defray the costs of environmental compliance.
E) be based on the renewability of the resources used to make the product.

Question

Quizplus · Accepted Answer

Environmentalists believe that prices should reflect not only the direct cost of producing a product, but also the indirect cost of environmental damage caused during production such as air, water, and soil pollution. This is known as the true cost of a product. By incorporating environmental costs into the price of a product, consumers can make more informed purchasing decisions that take into account the environmental impact of the product.

As Far as Prices Are Concerned, Environmentalists Believe Prices Should