How do rising prices slow resource depletion?

Three ways: reduce consumption (conservation), reduce use of the input into production, and encourage innovation. Higher oil prices led to better insulated homes, thus reducing consumption. Firms substantially reduced the energy intensity of their factories. Higher energy prices make solar and other energy alternatives more feasible.

Economics

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An adverse oil price increase will shift the short-run aggregate supply curve:

A) leftward. B) rightward. C) will not shift. D) none of the above.

Economics

If a society is on its production possibilities frontier, and decides to produce more health care,

a. the cost of producing an additional unit of health care will rise b. it must employ some previously unemployed resources c. its standard of living will rise d. some kind of inefficiency will occur e. the cost of producing an additional unit of some other good will rise

Economics