What happens to a resource as it becomes scarcer?
A) The price rises and this increases the future supply relative to demand.
B) The price rises and this increases the future demand relative to supply.
C) The price falls and this increases the future supply relative to demand.
D) The price falls and this increases the future demand relative to supply.

Question

Quizplus · Accepted Answer

As a resource becomes scarcer, its price typically rises due to increased competition for the limited supply. This higher price can incentivize producers to increase future supply, as it becomes more profitable to do so.

What Happens to a Resource as It Becomes Scarcer