Use supply & demand to explain how high oil prices over long period of time may efect pattern for family cars

The high price of oil shifts the supply curve for gasoline down, while the demand is initially unchanged, so the price will go up and consumption will fall. Since the demand for gas is driven by the demand for transportation consumers can regain the loss in transportation by replacing their cars with more fuel efficient ones. This will shift the demand curve down.Use supply %26amp; demand to explain how high oil prices over long period of time may efect pattern for family cars
Oil is a highly demanded commodity by consumers. With low in supply, where supply exceeds demand, price will tend to increase gradually. With increase in price this will discourage consumer to buy, which means that they will use less but it will however not discourage consumer from using it as I had mention it is a highly demanded goods/services. With increase in price it will even out the supply as there is less purchase per head then it means that there is enough share around. There may be cases of people not using car at all as they are not capable to coup up with the price increase. They may eventually prefer to use public services such as taxi, train, etc, which is a good way to promote public transport and hence reduce consumer spending which may lead to inflation. As per increase in demand, it's vice versa.Use supply %26amp; demand to explain how high oil prices over long period of time may efect pattern for family cars
Well, let's see. In 1926 it cost 11 cents to pump a barrel of oil and 76 cents to process one gallong of gasoline. Today, it still takes 11 cents to pump one barrel of oil and only 18 cents to process one gallon of gasoline. The United States is sitting on between 3 to 5 trillion barrels of oil which even with inflation and the exploding population should last until the year 3000 or so, so my question to you is, what will happen when the pollution from exhausts and other chemicals makes in impossible to breathe? Do we just die. I know this explanation has nothing to do with your question, it is just that fossil fuel consumption is such a bogus question, every one seems to ignore the obvious.