The Price Elasticity of Demand for an Exhaustible Natural Resource

Multiple Choice

The price elasticity of demand for an exhaustible natural resource tends to

A) fall over time because extraction costs rise over time.
B) stay constant over time because the resource's price rises at a constant rate.
C) rise over time because the resource's rising price stimulates conservation and the development of substitutes.
D) rise over time because resource extraction tends to become more efficient over time.