economics homework…puhlease help?
Assume that oil begins to run out and that extraction becomes more expensive. Trace through the effects of this on market for oil and the market for other fuels.
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The effects on the economy may be far more devastating than anyone can predict. Oil and oil by products are used throughout the world that it will impact each country very differently. US and most developed countries relies on oil and oil products in not only transportation but also on energy needs for factories, schools, buildings, homes. Plastics and by-products will also increase and possible jobs loss from the higher gas prices may cause a recession on some countries.
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the price of oil would definitely increase.
as for its effect on the other fuels, it would also increase. it’s like a chain effect. if one product increase, the rest would also increase.
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