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)the tendency to consume before the resource expires.

Question

Quizplus · Accepted Answer

When the price of a natural resource rises, it becomes more expensive to use, which creates an incentive to find substitutes for it. This incentivizes the development of new technologies, products or processes that either use less of the resource or replace it with a cheaper alternative, reducing demand for the original resource.

Rising Prices for a Natural Resource Stimulate