Question

In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of Mexico, refineries along the Gulf coast, and the pipeline infrastructure that transports oil and gas to customers across the eastern United States. The winter of 2006 was unusually cold in many parts of the country. How did these events affect the market for natural gas?

Describe or show the impact on Supply, Demand, Price, and Quantities of the impacted markets.

Answer 1

=>The analysis of equilibrium of the demand and supply forces determines the equilibrium .

=>That level of price-quantity combination. We generally start with a equilibrium (stable) situation in the market and then work our way to find out the effect of change in either or both of demand and supply forces and see how these market forces restore equilibrium in a tuarket.

=>The natural gas in market in 2006, at the equilibrium situation could be showed.

=>The supply of natural gas was severely decreased by Katrina. When the cold winter came, demand for natural gas to heat homes sharply increased. =>The combination of supply falling and demand rising created a big increase in the equilibrium price of natural gas.

=>The change in equilibrium quantity is uncertain because we don't know the relative size of each shift.'

​​​​​​impact of supply and demand prices.

if the demand will be high and the quality Will be the good then the price will be increased..

If demand of product will increase by that their quality of will reduce because increase the demands. .