Economics
During this winter the price of natural gas has gone through the roof. This brings many questions to mind. Are the companies just raising prices? Is there actually a shortage that is causing the raise in price? It turns out that the market for natural gas is a very competitive one and that there is in fact a shortage in supply that is causing the price to increase. Natural gas must be drilled for and there are only a certain number of active companies that drill and they all have a set amount of capital. In the short run the supply of natural gas is very inelastic because they cannot just produce more gas. They would need to get more rigs and find more natural gas then drill for
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Some common words found in the essay are:
Analysis Paper, natural gas, demand winter, gas drill, natural gas companies, market natural gas, price natural gas, supply natural gas, inventory levels, quantity supplied, market natural, price lower, increase demand, supply demand, raise price,
Approximate Word count = 479
Approximate Pages = 2 (250 words per page double spaced)
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