The supply curve of a depletable natural resource is usually
A)downward sloping because the resource runs out over time.
B)upward sloping because more of the resource can be profitably extracted at higher prices.
C)upward sloping because the price of the resource rises at the rate of inflation.
D)vertical because the supply of the resource is fixed.

Question

Quizplus · Accepted Answer

The supply curve of a depletable natural resource is typically upward sloping because as the price of the resource increases, it becomes more profitable for companies to invest in the extraction of more difficult or costly-to-reach resources, thereby increasing the supply available in the market.

The Supply Curve of a Depletable Natural Resource Is Usually