ollatptsmaining there is no attempt penalty 9 Question (2 points) See page 87 1s

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ollatptsmaining there is no attempt penalty 9 Question (2 points) See page 87 1st attempt Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that consumers will shift towards renewable energy such as wind or solar power even though technology now makes it possible to extract more natural gas, and therefore a lower price for natural gas is anticipated for the future. What would you do in the present? Choose one: O A. Sell as much natural gas as possible now and less in the future-reflected by a rightward shift of the current O B. Sell as much natural gas as possible now and less in the future-reflected by a movement up the current ( C. Sell as much natural gas as possible now and less in the future-reflected by a movement down the O D. Sell as little natural gas as possible in the present and delay extraction until the future-reflected by a supply curve in the future. supply curve. current supply curve. leftward shift of the current supply curve in the future. 29/32

Explanation / Answer

Answer
option D
The expected demand for the natural gas is lower in the future so the supply of natural gas increases now and shifts the supply curve to the right and decreases current price and increases quantity in the equilibrium

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