10 Changing resource prices will influence the decisions of both users and suppliers.

Higher resource prices give users a greater incentive to turn to substitutes and stimulate suppliers to provide more of the resource. Since these adjustments take time, when the demand for a resource expands, the price will usually rise more in the short run than in the long run. Similarly, when there is a fall in resource demand, price will decline more in the short run than in the long run.