1. A. Most geologists, refer to petroleum as a finite resource. They believe that someday, an exhausted natural supply of oil will cause the oil industry to disappear. Some economists, although not all, agree. Verbally explain the price path forecast with the expectation of eventual oil reserve exhaustion. Draw the appropriate diagram, and label it fully, including all price points. Fully explain how the price points cause the models forecasted price path to hold in the long run.

B. Contrary to part A, other economists believe that the worlds supply of oil never will run out. Separately answering as parts ((i) and (ii), explain two different reasons why most economists believe that a lack of petroleum never will cause the global oil industry to come to an end.