The Price Elasticity of Demand for an Exhaustible Natural Resource

question 192

Multiple Choice

The price elasticity of demand for an exhaustible natural resource tends to

• A)fall over time because extraction costs rise over time.
• B)stay constant over time because the resource's price rises at a constant rate.
• C)rise over time because the resource's rising price stimulates conservation and the development of substitutes.
• D)rise over time because resource extraction tends to become more efficient over time.

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