Which of the Following Statements Is True About the Demand

question 116

Multiple Choice

Which of the following statements is true about the demand for and/or the supply of natural resources?

• A) The supply curve for natural resources is more elastic in the long run than in the short run.
• B) The elasticity of demand for electricity, natural gas, and gasoline equals approximately 0.1 in both the short run and the long run.
• C) Natural resources are demanded by consumers and producers in steadily growing amounts, so future shortages are inevitable.
• D) The supply of many natural resources is finite; thus the long-run elasticity of supply must be zero.

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Definitions:

Decision Maker

An individual or group responsible for making choices after considering the consequences of various actions.

Irrational

Behavior or thoughts not based on logical reasoning, clear thinking, or aligned with factual evidence.

Economic Models

Simplified frameworks used to illustrate economic processes or theories through mathematical equations or diagrams.

Rationally

Acting based on reason or logic, typically in a way that maximizes self-interest or advantage within certain constraints or information.