In which of the following cases can we be certain that a natural resource has become scarcer?
A)both the demand for the resource and the supply of the resource have increased.
B)both the demand for the resource and the supply of the resource have decreased.
C)the demand for the resource has increased and the supply has decreased.
D)the demand for the resource has decreased and the supply has increased.

Question

Quizplus · Accepted Answer

When the demand for a resource increases, but the supply decreases, it is a clear indication that the resource has become scarcer. This implies that the resource is in greater demand but is harder to find or extract. As a result, the price of the resource would generally increase as suppliers attempt to balance supply and demand.

In Which of the Following Cases Can We Be Certain