Answered: How has weather played a roll in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How has weather played a roll in the market? What alternative energy sources are being considered and how will supply and demand look like after this increase in energy?

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A market is a place where the buyers and sellers interact with each other and the exchange of goods and services takes place between them. The market price and quantity are determined at the intersection of the market demand and supply curves. The weather affects mainly the supply side of the market. Bad weather causes the output to fall and as a result, the supply will fall. This causes the AS curve to shift leftwards and reduce the market quantity and increases the price.

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