Question

1) In the economy of Trantor, TOR is a very important resource. People in Trantor use 1,000 tons of TOR per year, and scientists believe there are 40,000 tons of TOR left in the world. Which of the following is most accurate? (2 points)

a) In 40 years, Trantor is going to run out of Tor for sure.

b) There’s no way Trantor could run out of Tor, because as Tor becomes scarce, the price of Tor will rise, and then people will use less and produce more and invent alternatives.

c) Trantor might not run out of TOR. It depends how easy it is to invent alternatives to TOR when the price rises, and to how easy it is to use less TOR when the price rises.

d) All of these are true

e) None of these are true

Answer 1

Answer

Option c) is correct. Trantor might not run out of TOR. It depends how easy it is to invent alternatives to TOR when the price rises, and to how easy it is to use less TOR when the price rises.

Reason:

Overtime, the forces of Demand and Supply would definitely come into force leading to increase in prices of TOR. When prices would increase, people would try to find alternatives of this resource or may start using it less. It totally depends on the possibilities of alternatives coming up in the future or people consuming TOR les due to increased prices, that Trantor may not run out of TOR.