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5. From the article: "U.S. gas output hit a daily record of 105 billion cubic feet in December... An unusually warm winter left a lot of gas unburned during heating season. By spring, the market was swamped and prices tumbled." This statement implies that the price of natural gas decreased during the spring of 2024 because: A. the elasticity of supply of natural gas is greater than the elasticity of demand. B. an increase in the demand for natural gas exceeded an increase in the supply of natural gas. C. a decrease in the supply of natural gas exceeded a decrease in the demand for natural gas. D. the government imposed a ceiling on the price of natural gas. E. an increase in the supply of natural gas exceeded an increase in the demand for natural gas.

          5. From the article: "U.S. gas output hit a daily record of 105 billion cubic feet in December... An unusually warm winter left a lot of gas unburned during heating season. By spring, the
market was swamped and prices tumbled." This statement implies that the price of natural gas decreased during the spring of 2024 because:
A. the elasticity of supply of natural gas is greater than the elasticity of demand.
B. an increase in the demand for natural gas exceeded an increase in the supply of natural gas.
C. a decrease in the supply of natural gas exceeded a decrease in the demand for natural gas.
D. the government imposed a ceiling on the price of natural gas.
E. an increase in the supply of natural gas exceeded an increase in the demand for natural gas.

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5. From the article: "U.S. gas output hit a daily record of 105 billion cubic feet in December... An unusually warm winter left a lot of gas unburned during heating season. By spring, the
market was swamped and prices tumbled." This statement implies that the price of natural gas decreased during the spring of 2024 because:
A. the elasticity of supply of natural gas is greater than the elasticity of demand.
B. an increase in the demand for natural gas exceeded an increase in the supply of natural gas.
C. a decrease in the supply of natural gas exceeded a decrease in the demand for natural gas.
D. the government imposed a ceiling on the price of natural gas.
E. an increase in the supply of natural gas exceeded an increase in the demand for natural gas.

Added by Michael B.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Andrew Davis

10/16/2022

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This means that the supply of natural gas was greater than the demand. Show more…

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5. From the article: "U.S. gas output hit a daily record of 105 billion cubic feet in December... An unusually warm winter left a lot of gas unburned during heating season. By spring, the market was swamped and prices tumbled." This statement implies that the price of natural gas decreased during the spring of 2024 because: A the elasticity of supply of natural gas is greater than the elasticity of demand. B an increase in the demand for natural gas exceeded an increase in the supply of natural gas. C a decrease in the supply of natural gas exceeded a decrease in the demand for natural gas. D the government imposed a ceiling on the price of natural gas. E an increase in the supply of natural gas exceeded an increase in the demand for natural gas.

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Transcript

00:01 So here we are need to calculate in elasticity.

00:04 The elasticity is the change in quantity over the change in price.

00:09 So we better get information on quantity and price, right? which we do.

00:12 We just want to make sure we don't mess them up.

00:15 So the change in quantity is, i'm just going to call this in millions.

00:23 Quantity is going from 250 or is going from 250.

00:30 To 240.

00:32 You can do that for free because elasticity has no units.

00:37 So whatever units we use for electricity will cancel each other out.

00:42 So i can use millions of kilowatt hours if i want without loss of generality.

00:46 The price is going from point one to 0 .2.

00:50 Great.

00:52 And we want to pro, it doesn't say you use the midpoints, but i'm going to use a midpoint formula because we might as well.

00:59 The midpoints are 2 .45 and 11.

01:02 So the percent change formula is going to be the new minus the old over the midpoint.

01:08 And the bottom is the same thing.

01:10 It's new minus old over the midpoint.

01:16 We got a whole bunch of something to do.

01:18 So the quantity went down by minus 10.

01:20 The midpoint is 245...

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