Rising prices for a natural resource stimulate
A)the development of complements for the resource.
B)the development of substitutes for the resource.
C)the development of externalities from the resource.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When the price of a natural resource rises, it becomes more expensive for consumers to use. As a result, they will seek out substitutes that are less expensive. This, in turn, will stimulate the development of substitutes for the resource. The development of complements for the resource and externalities from the resource may also occur, but they are not necessarily a direct result of rising prices.

Rising Prices for a Natural Resource Stimulate