Suppose solar energy can be produced at a cost of $2 per unit of energy. Sup-pose the

Question:

Suppose solar energy can be produced at a cost of $2 per unit of energy. Sup-pose the current price of oil is $1.80 per unit of energy and there is currently enough oil to last 100 more years at current use levels. If the real rate of interest is 0.05, what do you expect to happen to the current price of oil?