If China and India continue their economic expansion, the world cannot provide enough raw materials without terrible shortages worldwide. Evaluate this statement.A) True, increased demand from developing countries will swamp the existing supply of resources.B) True, increased demand from China and India will lead to large shortages in the North America and Europe.C) False, the shortage will be limited to China and India.D) False, increasing scarcity will result in higher prices and the deployment of new technologies that increase the efficiency of production, and together these markets forces will help to balance demand and supply worldwide.

Question

If China and India continue their economic expansion, the world cannot provide enough raw materials without terrible shortages worldwide. Evaluate this statement.A)  True, increased demand from developing countries will swamp the existing supply of resources.B)  True, increased demand from China and India will lead to large shortages in the North America and Europe.C)  False, the shortage will be limited to China and India.D)  False, increasing scarcity will result in higher prices and the deployment of new technologies that increase the efficiency of production, and together these markets forces will help to balance demand and supply worldwide.

Jaelyn Baker · Accepted Answer

Final Answer : D, Explanation :  Higher prices and technological advancements typically lead to more efficient resource use and alternative solutions, balancing supply and demand globally.

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