Question

what is backstop in economy​

Answer 1

Answer:

Backstop resources theory states that as a heavily used limited resource becomes expensive, alternative resources will become cheap by comparison, therefore making the alternatives economically viable options.

Answer 2

Explanation:

Backstop resources theory states that as a heavily used limited resource becomes expensive, alternative resources will become cheap by comparison, therefore making the alternatives economically viable options. In the long term, the theory implies faith that technological progress will allow backstop resources to be essentially unlimited (see also Cornucopian), and that need will cause the development of new technologies to become cost effective.