Will depletable resources such as oil, coal, and aluminum be exhausted if their prices are left to the market?
No. As supplies decrease, price will rise. This will reduce quantity demanded, in line with the remaining, but more difficult to extract, supplies. For example, oil was depleted in the continental United States before turning to Alaska. Similarly, Britain only developed North Sea oil as the price rose.
You might also like to view...
To separate the income and substitute effects, the imaginary budget line should be
A) tangent to the new indifference curve and parallel to the new budget line. B) tangent to the new indifference curve and parallel to the old budget line. C) tangent to the old indifference curve and parallel to the new budget line. D) tangent to the old indifference curve and parallel to the old budget line.
Refer to the graph shown. Total utility is at its maximum at point:
A. A. B. B. C. C. D. D.