单选题
Which of the following best describes the elasticities of supply for renewable and non-renewable resources ? Renewable resource Non-renewable resource ①A. Elastic Perfectly elastic ②B. Perfectly inelastic Perfectly elastic ③C. Inelastic Perfectly inelastic
【正确答案】
B
【答案解析】The supply (flow) of a renewable resource is fixed at any point in time. Therefore the supply is independent of price, or perfectly inelastic. Supply (stock) of a non-renewable resource is perfectly elastic, as the resource is supplied from its known stock at a price equal to the present value of its expected price in the next period.