Suppose that new demands greatly reduce the proved reserves of titanium to unexpectedly low levels, and it appears that the new demands will continue. If the market price is unregulated, we should expect that the price will
a. rise sharply, calling forth added exploration and more effective (and more costly) recovery methods, resulting in additional new supplies of titanium.
b. rise sharply, calling forth new ways for manufacturers to conserve titanium and to find substitutes for it.
c. over time, bring the quantity supplied of titanium into balance with the quantity demanded.
d. do all of the above.
D
You might also like to view...
The record of international receipts and payments is called the
A) official settlements account. B) balance of payments. C) U.S. official reserves. D) current account. E) capital and financial account.
If purchasing power parity exists and the exchange rate is 1.50 U.S. dollars per British pound, than a latte that has a price of $4.00 in San Jose, California, has a price of ________ in London, England
A) 2.67 pounds B) 4.00 pounds C) 8.00 pounds D) 0.37 pounds E) 6.00 pounds