Imagine you are the owner of a natural gas company.You can either extract as muc

Question

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 energysuch 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 ?

Imagine you are the owner of a natural eas 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: ° A, Sell as much natural gas as possible now and less in the future-reflected by a rightward shift of the current cuve in the future supply curve of the current supply curve in the future. supply curve o B. Sell as much natural zas as possible now and less in the future-reflected by a movement up the current C. Sell D. Sell as much nstural gas as possible now and less in the future-reflected by a movement down the current li stural ge as possible in the present and alay extraction unilthe tunure-"refected by a leftward shut o OF CHEC quEsTION COMPLET

Explanation / Answer

Correct answer is A. Sell as much natural gas as possible now and less in the future-reflected by a rightward shift of the current supply curve in the future

Explaination:

It is possible to extract more natural gas with the help of technology and also the demand will increase and in future price will decrease so it is profitable to sell as natural gas as possible at higher price now.

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