Question

Describe the conventional view of the relationship between the supply of a mineral resource and its market price. What are five effects of a mineral becoming scarce? Discuss the pros and cons of the U.S. General Mining Law of 1872.

Answer 1

Answer:

In a conventional view, if there is an enormous amount of the mineral resource, if the quantity supplied is higher than the demand, then the price of the mineral resource will be cheap. On the other hand, if the mineral resource is scarce, it price will increase if demand is more than supply. However, in developed countries, the effect of market price may not be applicable due to the regulations in form of subsidies and taxes imposed by the government.

The five effects of a mineral becoming scarce are mineral resource conservation, increased/higher prices, opportunity for new exploration, manufacturing of profitable lower-grade ores, and stimulation of development of new technologies.

The pros of the U.S. General Mining Law of 1872 creates reduced costs that is beneficial to the buyers of goods and it eventually leads to mineral expansion. The pros cons of the U.S. General Mining Law of 1872 leads to the use of land for numerous purposes which have negative effects on the environment not until the mining law in 1992.

Explanation:

In a conventional view, if there is an enormous amount of the mineral resource, if the quantity supplied is higher than the demand, then the price of the mineral resource will be cheap. On the other hand, if the mineral resource is scarce, it price will increase if demand is more than supply. However, in developed countries, the effect of market price may not be applicable due to the regulations in form of subsidies and taxes imposed by the government.

The five effects of a mineral becoming scarce are mineral resource conservation, increased/higher prices, opportunity for new exploration, manufacturing of profitable lower-grade ores, and stimulation of development of new technologies.

The pros of the U.S. General Mining Law of 1872 creates reduced costs that is beneficial to the buyers of goods and it eventually leads to mineral expansion. The pros cons of the U.S. General Mining Law of 1872 leads to the use of land for numerous purposes which have negative effects on the environment not until the mining law in 1992.