Question 23.47

1. Suppose that we have a 100-year “supply” of a resource (such as oil, for which known world reserves will last less than 100 years at the current world rate of use). That is, the resource would last 100 years at the current rate of consumption. Suppose that the resource is consumed at a rate that increases 2.5% per year (this is the average increase in consumption for oil in the United States since 1973). How long would the resource last?
2. Suppose that we greatly underestimated the supply and actually have a 1000-year supply at the current rate of use. How long would that last if consumption increases 2.5% per year?
3. Let’s think big and suppose that there is 100 times as much of the resource as we thought—a 10,000-year static reserve. How long would that last if consumption increases 2.5% per year?