by turmoil » Sat 23 Jul 2005, 16:44:44
nor am i but here goes...
i think your graph assumes a very elastic suppy-demand relationship. up until the oil crisis in the 70s, oil use was directly linked to economic growth. Since then some inelasticity was created because of efficiency gains and thats why $60 for a barrel of oil is not devastating the world economy.
The problem now is that we are voluntarily giving up those efficiency gains with population growth, vehicle choice, and wars of attrition, therefore making oil use more inelastic and exacerbating the resource depletion problem. This applies to every energy source; oil is not the only fossil fuel under stress.
or something like that...
here's some info on elasticity
http://www.investopedia.com/university/ ... omics4.asp
Edit: maybe aaron will host the picture for you.
Last edited by
turmoil on Wed 17 Jan 2007, 01:21:35, edited 2 times in total.
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