Which of the following indicates greater scarcity of a natural resource?
A)simply an increase in its current dollar price
B)an increase in its price that is greater than the rate of inflation, but only if the increase in price is created by a reduction in supply
C)an increase in its price that is greater than the rate of inflation
D)an increase in its price that is greater than the rate of inflation, but only if the stock of the resource has fallen

Question

Quizplus · Accepted Answer

An increase in price greater than the rate of inflation generally indicates scarcity, as it reflects a real increase in cost, suggesting demand is outpacing supply.

Which of the Following Indicates Greater Scarcity of a Natural