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Home/Practice questions/Economics
EconomicsIndian Economic Development: Environment and Sustainable Development

Read the following statements about the demand for and supply of envi…

Read the following statements about the demand for and supply of environmental resources.

Statement I: With population explosion and the industrial revolution, the demand for resources went beyond the rate of regeneration of the resources.

Statement II: Today the supply of environmental resources and services is limited due to overuse and misuse.

Answer & explanation+

Correct answer: option 3

The correct answer is Option (3) → Both Statement I and Statement II are true

In early days, the supply of environmental resources was more than the demand. Today this has reversed.

Statement I: With population explosion and the industrial revolution, the demand for resources went beyond the rate of regeneration of the resources. — True. Growing needs pushed demand beyond the rate of regeneration.

Statement II: Today the supply of environmental resources and services is limited due to overuse and misuse. — True. This is the reversal of the supply-demand relationship: more demand, but limited supply.

NCERT (2026-27): “7.2 Environment — Definition and Functions … But with population explosion and with the advent of industrial revolution to meet the growing needs of the expanding population, things changed. The result was that the demand for resources for both production and consumption went beyond the rate of regeneration of the resources; the pressure on the absorptive capacity of the environment increased tremendously — this trend continues even today. Thus what has happened is a reversal of supply-demand relationship for environmental quality — we are now faced with increased demand for environmental resources and services but their supply is limited due to overuse and misuse. …”

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