ExxonMobil uses natural resources, such as reserves of petroleum, to produce its goods and services. The value of these resources is likely to:
A) remain constant, because natural resources are created by natural forces and don't respond to market forces.
B) rise with either an increase in demand or with a decrease in supply.
C) fall with increased demand and rise with increased supply.
D) rise with decreased demand, but remain steady when supply falls.

Question

Quizplus · Accepted Answer

The value of natural resources, including petroleum, is subject to market forces and therefore can fluctuate based on changes in demand and supply. When demand for petroleum increases, its value typically rises, whereas a decrease in supply can also lead to an increase in value.

ExxonMobil Uses Natural Resources, Such as Reserves of Petroleum, to Produce