Question

4.1.2 quiz: natural resources
what is the significance of the intersection of the red and green curves?
a. supply and consumption are both zero.
b. consumption increases but supply remains stable.
c. supply becomes greater than consumption.
d. consumption becomes greater than supply.

Explanation:

• The red curve represents total supply and the green curve represents total consumption.
• At the intersection point, we analyze the relationship between supply and consumption.
• Before the intersection, supply is greater than consumption (red curve above green curve).
• At the intersection, they are equal.
• After the intersection, consumption (green curve) is above supply (red curve), meaning consumption becomes greater than supply.

Answer:

D. Consumption becomes greater than supply.