1. [Related to the Making the Connection on page 86] More than half of homes in the United States are heated by burning natural gas. According to an article in the Wall Street Journal, demand for natural gas decreased during the winter of 2012 because of unusually warm weather. At the same time, “robust production [of natural gas] from U. S. shale fields has created record supplies.” Use demand and supply graphs to illustrate your answers to the following questions: a. Can we use this information to be certain whether the equilibrium quantity of natural gas increased or decreased?(5 points) b. Can we use this information to be certain whether the equilibrium price of natural gas increased or decreased? (5 points)
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