I understand there are Easy/Normal/Hard settings, and a fourth difficulty called "Survivor" that needs to be unlocked.
For me it's between Normal and Hard. Leaning towards Hard, because apparently this makes the supplies more scarce, and I see scarcity as the essence of survival horror. However, I want to be challenged, not frustrated.
Then there is the option of doing a Normal run and then replaying on Hard to extend the life of the game. Hmm.