If a depletable resource is selling in a perfectly competitive market, its price will rise by greater and greater dollar amounts each year.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of a depletable resource will rise by greater and greater dollar amounts each year because the supply of the resource is finite and the demand for the resource is increasing. As the supply of the resource decreases, the price of the resource will increase in order to ration the remaining supply.

If a Depletable Resource Is Selling in a Perfectly Competitive