All else equal, oil price increases decrease annual oil consumption and therefore decrease the number of years until the oil stock is depleted.

Question

Quizplus · Accepted Answer

Higher oil prices typically lead to a decrease in consumption due to demand elasticity. However, this reduction in consumption can extend the number of years until the oil stock is depleted, not decrease it, because the resource is being used more slowly.

All Else Equal, Oil Price Increases Decrease Annual Oil Consumption