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Topic: Miscellaneous
Number of pages / Number of words: 4 / 935
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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...


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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 it.

There are other reasons for the cause of these skyrocketing gas prices. For one, drive-offs make gas station owner increase their gas prices...


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