This makes no logical sense to me (Am i the only one)? Non-renewable resources have an inelastic supply curve, and renewable resources have an elastic supply curve.
no its illogical for me too…take oil - historically you’ve always had a supply side response to the increase in price (not so much now!)…thats right isnt it?
non-renewable resources have a perfectly elastic supply curve
I guess it means, if something is limited or scarce, you can’t pump extra supplies just because price goes up like crazy.
alex I think you have it backwards non-renewable = perfectly elastic supply (All opportunity cost) renewable = Perfectly inelastic supply (All economic rent)