What is nonrenewable resources?
resources that do not regenerate through ecological processes, at least on a human time scale
What is a choke price?
The minimum price on a demand curve where the quantity demanded equals zero
- What are the four stages in consumption and prices of a nonrenewable resource over time?
Stage 1: Prices decline even though extraction is rapidly increasing
Stage 2: Prices are fairly stable as increasing demand (tending to pull prices up) balances further discovery and technological improvement (tending to pull prices down).
Stage 3: Demand starts to press against resource limitations, prices begin to rise, and reserves that were subeconomic in earlier years become economic. Technological progress is no longer sufficient to offset increasing resource scarcity.
Stage 4: Resources are depleted further, and rising prices begin to reduce the quantity demanded. Ultimately, the price reaches the choke price, at which the quantity demanded falls to zero.
- What concerns exist about the adequacy of global mineral reserves?
Resources depletion and environmental damages are some concerns about the adequacy of global mineral reserves.
- What are some of the environmental impacts of mining?
Tailings: Waste from mining operations that pollutes the environment through water and air contamination.
Smelting: Refining of mineral ores that pollutes water and air
- What is a backstop resource?
A substitute resource that becomes a viable alternative after the price of the initial resource reaches a certain high price.
