In which of the following cases can we be certain that a natural resource has become scarcer?
A)both the demand for the resource and the supply of the resource have increased
B)both the demand for the resource and the supply of the resource have decreased
C)demand for the resource is unchanged and the supply of the resource has increased
D)the demand for the resource has decreased and the supply of the resource is unchanged

Question

Quizplus · Accepted Answer

If the demand for a resource has decreased, it means that people are less interested in using or consuming that resource, which suggests that it has become scarcer. This is especially true if the supply of the resource remains unchanged, as the reduced demand should lead to a build-up in available supply. The other options do not necessarily indicate a scarcity of the resource. If both demand and supply increase, it suggests that the resource is still readily available and desirable, while if both decrease, it could be due to other factors such as a shift in preferences or technology. If demand is unchanged but supply increases, it suggests that the resource is not yet scarce.

In Which of the Following Cases Can We Be Certain