Question

What top three variables did you believe to affect the supply of electricity the most? What influenced that perception?

Answer 1

ANSWERS:

The top 3 variables that affect the supply of electricity are:

1) AVAILABLITY OF GENERATION OF RESOURCES

As we all know, coal, natural gas, and petroleum.

(Presently petroleum is the largest source of energy production in USA).

These sources (fossil fuels) are becoming rare day by day.

Hence, in this rising population, a shortage of this source may affect the supply of electricity.

2) FUEL COSTS

In this present generation, costs of equipments are rising due to excess demand in the market.

This ultimately leads to a rise in the cost of production. (Mainly fuel costs)

Increase in these production costs affects the supply of electricity.

3) POWER PLANT AVAILABLITY

In this present situation, electricity is still not available to each and every individual.

Increase in the cost of equipments are leading to a shortage of power plant availablity.

Hence, lesser power plants will lead to lesser income, in this growth of population.

Excess demand will lead to shortage to the supply of electricity.

The 2 main factors that influenced this perception are :

Increasing population growth

Reduction in availability of fossil fuels