Which of the Following Best Explains the Falling Relative Prices

question 58

Multiple Choice

Which of the following best explains the falling relative prices of most of the natural resources?

• A)Most are renewable; therefore, the supply of natural resources is increasing.
• B)Our ability to conserve natural resources is increasing faster than their depletion.
• C)The demand for natural resources is diminishing due to the discovery of new substitutes.
• D)Prices of natural resources, adjusted for inflation, are in fact increasing.

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