Question

Use economic theory to predict when the world will run out of oil.

Answer 1

The economic theory behind when the world will run out of oil is that According to economists there will be a time when adequate supply of cheap oil will no longer be there as easy to extract Will be finished, due to which the cost extracting the oil will increase day by day but the ability to pay for this increased cost of oil will not. There is very limited amount of substitute for oil which will also no longer be there. The big oil importing companies are already experiencing themselves in poor financial problems as increase in price of oil lead to cutbucks in discretionary spending.