Coupon Accepted Successfully!

 Introduction to Resource
  • Renewable resource (e.g. Water): Supply is perfectly inelastic (vertical) & price is determined by demand.
  • Non-renewable resource (e.g. oil): Supply is perfectly elastic (horizontal), quantity supplied is determined by demand, & current price is the present value of the expected price of next period.

Sample Question



The supply of a non-renewable resource is:

      Perfectly inelastic

      Perfectly elastic

      The known stock


Perfectly elastic

Test Your Skills Now!
Take a Quiz now
Reviewer Name