What may happen in the market for a substitute product if the supply of a necessity such as oil becomes exhausted?

Answer 1

This is very serious matter of exahausting of oil supply this exhausting will disturb our daily routine of kitchen or in vehicles.

We, then, have to depend on other sources of energy namely solar energy, wind energy, tidal energy, etc. However, pollution due to overuse will be controlled after exhaustion.

Contrary to popular belief I think the overall affect may be beneficial.With no oil,the atmospheric pollution will be as much less.Moreover people's health will improve what with the amount they will have to walk in the absence of automobiles

Oil is a non-renewable source of energy. It is also exhaustible in terms of usage. Therefore it is natural that one day the earth's resources of oil supply will end and mankind will have to search for alternative sources of energy.

The positive impact of this reality is that by the time the current oil supplies get exhausted we will have discovered alternative sources of energy and reduce industrial dependence on oil for energy.

Pollution of the atmosphere can also be reduced if we switch over to renewable sources of energy such as Solar energy and Wind energy.

If all the worlds oil supply "SUDDENLY" get exhausted, then it would be catastrophic for the world economy because, there would be no electricity which has become a primary necessity. No electricity, no lights, no computer, and no microwave oven, no fridge, no machines to do the mass production of various food products, specially ice cream. All transportation would be in a halt. Cause, engines needs gas to run and gas is one of the many by products of oil. Engines are the key component of a vehicle. Even ships and airplanes won't work because those also defends on oil products. Basically, we would be stepping back by atleast a century. but it may not be the whole world because the United States of America has Nuclear power plants to provide electricity and we have natural gas to provide some more additional power resources but the rest of the world would be in a chaos.

That is why the Government is working on finding new energy resources, such as hydrogen operated cars. Or ethanol, or methane and also started on harnessing power from the wind and the sun. Because sooner or later, oil deposits would really run out

Well I think that we would have to be very VERY conservative with our energy use. Also, think about how all of those solar panels, wind turbines, water turbines are all made. Machines that run on fossil fuels put them together. We use plastics that are made from oil as part of those things that gather energy from "natural energy sources." It will be very very very different. Almost like the dark ages or the medieval world, eh?

I say we start now. Take all of the automobiles, and just recycle them and reuse them to build effective, trainlike, magnetic, public transportation systems that let us go wherever we need to be. lol. I know it sounds far fetched, but it's better than having an exhausted fuel supply with nothing started to have a somewhat normal societal existence. I just think its better to have something in place in the near future for when that day actually comes (because it eventually will). After all, oil IS a non-renewable energy resource!

One relevant point is the catastrophic effect on the global economy. The Us is highly dependent on imported oil. If the accessible sources of oil are depleted we will have to find other more difficult sources and even those will be finite.

In the interim, many countries that have petroleum exports as their priary source of income will fall into desolation when their wells run dry. The desert bedouins will have to go back to their tents. Mexicans will have to go North to the US for work, wait, they're doing that now.

We will be healthier because we will have to walk everywhere we go

I guess we'll be walking.

well, Lots of things will happen.

First of all we will need to find an alternative energy source,a good one would be solar energy or bio fuels.

This would then cause major economic upheavals for oil giants. Middle East, US ,China, etc.

Car and other electronics would be less in use and technology advancement would slow down due to sudden shortages of oil.

We have to exploit other from of energy that may cause the Earth's condition to further deteriorate and cause environment changes, air comspostitions may change, a new ice age, of mantle may cool down due to loss in heat, etc.

Food supplies would drop since everything now runs on diesel to produce the food. Everyone would have to bike to work. The price of Electric vehicles would be 10 times that they are now. Electricity would have to be rationed as greener energies cannot produce the amount of of Electricity needed. Basically, life would go back to being much like the 1900s. People would probably start growing the own veggies in their back yard. Candle prices would go throw the roof. It would be completely different that what we are spoiled to now.