Which of the following is an example of a permanent resource price differential?
A)When the price of oil increases, oil exploration increases.
B)When the price of CDs falls, CD production decreases.
C)When demand for land in a city increases, its price increases above prices of land elsewhere.
D)When demand for computer programmers increased, more people went into that field.
E)When the price of oil rose, demand for solar panels increased.

Question

Quizplus · Accepted Answer

A permanent resource price differential refers to a situation where the price of a resource, such as land or oil, is consistently higher or lower in a particular location compared to other locations. In this case, the demand for land in a city increases and its price increases as a result.

Which of the Following Is an Example of a Permanent