Which of the following factors affect the demand for petrol in the long run? a) Share in the total expenditure b) Habits c) Nature of the product d) Time period
Answers
Answer:
Explanation:
Increases in natural gas supply generally result in lower natural gas prices, and decreases in supply tend to lead to higher prices. Increases in demand generally lead to higher prices, and decreases in demand tend to lead to lower prices. In turn, higher prices tend to moderate or reduce demand and encourage production, and lower prices tend to have the opposite effects.
Three major supply-side factors affect prices:
Amount of natural gas production
Level of natural gas in storage
Volumes of natural gas imports and exports
Three major demand-side factors affect prices:
Variations in winter and summer weather
Level of economic growth
Availability and prices of other fuels
Because of natural gas supply infrastructure constraints and limitations in the ability of many natural gas consumers to switch fuels quickly, short-term increases in demand and/or reductions in supply may cause large changes in natural gas prices, especially during the wintertime.