When studying the market for resources, it is important to understand that:
a. resources are wanted not for themselves, but for what they produce.
b. demand for resources is generally inelastic in nature.
c. derived demand does not apply to the resource market.
d. resource markets do not conform to the laws of supply and demand as other markets do.
e. supply is much more important than demand in determining the price of a resource.
Question 2
To say that there is a scarcity of gold means that:
a. gold prices will plummet.
b. there is not enough gold to satisfy people's demand.
c. there are a very few substitutes for gold.
d. gold is relatively less expensive than other metals.
e. the demand for gold is changing.
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