Question

Hello! I have my homework due in 6 hours, so pleaseeee help me out with these two small questions. Thanks!

b. On the graph below, illustrate the increase in the price of gas associated with the following quote. (2 pts.) "Natural-gas prices are on the rise, thanks to a huge cold front forecast to sweep down over much of the country": MC=MEC+MỤC Demand MEC Quantity

first one depits natural gas, second one is also the same.

Answer 1

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MENEC MC: MECMUL MCNEC = Changed " MC curve Q" NEW & PNEW New Equilibrium. - МЕС NEW Due to a and cold, the hence the cost MC of natural curve will gas extraction increases, shift to it's left DN= New demand curve PIN & St new equilibrium MC Demand MEC Since fall shift gas. oil and coal are close substitutes, with a in prices of coal in next year people will to coal instead instead of on using nahrala Hence demand curve will shift left.