Effect

Depletion of natural sources is one of the most critical problems the world community has to face, especially after the sharp increase in the world population during the last century. Each person has a number of vital for example likes food, drink, clothing and non-vital such as education, employment, entertainment, needs, all of which require consumption of Earth's resources. Basically there are two effects which are rising prices and scarcity.

a.Rising prices

When this happens, production is bound to shrink. However, in an overpopulated society, demand remains high. This causes prices of goods to rise, in a bid to balance demand and supply. However, a change in price cannot suddenly curb a large population's needs. Therefore, prices remain high and even keep rising as long as people consume the expensive product.

The increasing gas and fuel prices worldwide

b.Scarcity

An extreme scenario of critically depleted natural resources combined with an extremely high consumer base is scarcity. It this case, production becomes so low for example oil wells become dry and it cannot even cover the needs of those consumers accepting extraordinary prices. When an economy reaches this point, the only way for a government to cover this problem is to avoid market mechanisms and regulate the provision of goods, through coupons for instance.