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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Definitions:

Nail Plate

The hard, protective, translucent part of the nail composed of keratin, covering the nail bed and forming the visible nail.

Epidermis

The outermost layer of the skin that acts as a barrier against environmental damage and pathogens.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and connective tissue.

Stratum Basale

The deepest layer of the epidermis, consisting of basal cells that continuously divide and produce new skin cells.