Why Natural Gas Prices May Sink Further Natural-gas prices have fallen to multi-year lows because of warmer than average temperatures, reduced consumption, and increased supplies. Source: marketwatch.com, February 13, 2020

a. How is the price of natural gas determined?

b. When demand decreases and supply increases, explain the process by which the market adjusts.

c. On a graph, show the effect of the decrease in demand and increase in supply on consumer surplus and producer surplus.