What determines the demand for a nonrenewable natural resource?
What will be an ideal response?
The demand for a nonrenewable natural resource depends on the resource's value of marginal product and the expected future price of the resource.
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Suppose a consumer is torn between buying a Chevy Tahoe or a Ford Expedition, each selling for $30,000. He eventually decides on the Tahoe. What's his opportunity cost?
A) $30,000 B) $30,000 plus taxes, tags, insurance, etc. C) The satisfaction he would have experienced owning the Ford Expedition D) The frustration he will face owning the Chevy Tahoe E) B, C, and D above.
Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the number of firms in the market b. An increase in the current price of the product c. A decrease in productivity d. An increase in the expected future price of a product e. A decrease in the price of an input