Asked by Isabella Cardenas on Apr 28, 2024
Verified
Which of the following explains why commodity prices have fallen since 1850?
A) The demand for productive resources has fallen faster than the supply of those resources.
B) The demand for productive resources has grown faster than the supply of those resources.
C) The supply of productive resources has increased, while the demand has fallen.
D) The supply of productive resources has grown faster than the demand for those resources.
Productive Resources
Includes the inputs used in the production of goods and services, such as labor, capital, and natural resources.
- Discuss the fluctuations in commodity prices and the basic economic principles that explain these changes.
Verified Answer
AS
Agung SeptaMay 03, 2024
Final Answer :
D
Explanation :
The primary reason commodity prices have fallen since 1850 is that technological advancements and improvements in production methods have significantly increased the supply of productive resources. This increase in supply has outpaced the growth in demand, leading to a decrease in commodity prices.
Learning Objectives
- Discuss the fluctuations in commodity prices and the basic economic principles that explain these changes.