Assume the epidemic significantly reduces the supply for natural gas and that there are no changes to the demand for natural gas. graphically depict any changes affecting the market for natural gas...

Assume the epidemic significantly reduces the supply for natural gas and that there are no changes to the demand for natural gas.

• graphically depict any changes affecting the market for natural gas and any changes that impact the individual firm.


• Show the movements of the curves (if any) and the new Short Run Equilibrium (SRE).

assume the natural gas industry is perfectly competitive, demand is downward sloping, supply is upward sloping, and production technology results in traditional U-shaped ATC and AVC curves.

market price is always greater than the minimum of the AVC curve.