Final answer:
Resource scarcity often leads to innovation because of the need to avoid waste, invest in research and development, and find alternative sources.
Step-by-step explanation:
Resource scarcity often leads to innovation because of several reasons:
- Scarcity tends to lead to inefficiencies; avoiding waste then becomes a motivating factor. When resources are scarce, individuals and organizations are forced to find ways to make the most out of limited resources. This pressure encourages them to innovate and find more efficient ways of using resources to avoid waste and maximize output.
- Increases in the price of the resource make it cost-effective to spend money on research and development of new sources. As the price of a resource increases due to scarcity, it becomes financially viable to invest in research and development of alternative sources. This can lead to the discovery of new technologies, processes, or substitutes that help alleviate the scarcity.
- Scarcity creates a need for finding alternative sources. When a resource becomes scarce, it becomes necessary to find alternative sources or develop new technologies to meet the demand. This drives innovation and encourages the exploration and development of new resources or methods of production.
In conclusion, resource scarcity often leads to innovation due to the need to avoid waste, the cost-effectiveness of investing in research and development, and the necessity of finding alternative sources. The correct option for the asked question is option D, to spend money on research and development of new sources.