Read the following statements carefully:
Statement 1: Environmental concerns of waste generation and pollution have become critical, due to reversal of demand and supply relationship.
Statement 2: Environmental crisis happens when the rate of resource extraction is less than that of regeneration of resources.
In the light of the given statements, choose the correct option from the following:
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An environmental crisis often occurs when the consumption of natural resources exceeds their capacity to regenerate, causing irreversible damage to ecosystems and resources.
Statement 1 is incorrect because environmental concerns related to waste generation and pollution are not primarily caused by the reversal of the demand-supply relationship. These concerns arise due to the excessive consumption of natural resources and unsustainable waste management practices. Statement 2 is correct as it correctly explains that an environmental crisis occurs when the rate of resource extraction exceeds the rate of regeneration of resources, leading to depletion of resources and environmental degradation.