Economics
5th Edition
ISBN: 9781319066604
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 24, Problem 13P
To determine
a.
The number of year proven oil reserves will last and explain Malthusian view on the number calculated.
Introduction: The proven oil reserves refer to the quantity of reserves of hydrocarbons that are also known as the reserves for crude oil or the natural gas. These reserves are expected to be recovered in future in the given economy in a period of time.
To determine
b.
The assumptions about the total quantity, total prices and their consistence with the Malthusian view on limited resources.
To determine
c.
The effect of years of oil reserves on the market forces if the demand and addition in reserves remains the same.
Introduction: Demand refers to the quantity of a good required in an economy in a given period of time.
Market forces refer to various factors that affect the demand or the prices or the quantity demanded of a commodity in economy in a given period of time.
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