Heating Commodities
Beginning of paper
Back in the middle of October, the price of natural-gas had risen
because a gas company was forced to shut down a pipeline due to the need for
repairs. This impending shortage led to the decrease in prices for other
heating commodities, as well as larger profits. The demand for energy was
becom ....
Middle of paper
.... is direct
(positive). As the price of natural increases, the quantity demanded for the
three other energy commodities increase.
The market system today functions on price. Consumers make their
decision on what to buy by the price of their desired good. Naturally,
consumers will choose the lower price of a commodity they wish to purchase.
This is why consumers, wanting to heat their homes, chose to heat them with
natural-gas's substitutes (crude oil, heating oil, or gasoline) rather than the
....
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Word count: 543
Page count: 2 (approximately 250 words per page)
