1. Use supply and demand theory to analyze what has happened in the macroeconomy to make utility prices so high. 2. Use the theory of surplus and shortage to explain cost push inflation and demand pull inflation.

Electric Bills Rise Nationwide As Natural Gas Prices Climb BY KATHERINE BLUNT substantially more expensive to supply constraints and plant. dex for electricity in August AND JENNIFER HILLER for utilities to purchase or pro- retirements. brune i jan . climbed 15.8% over the same duce power, and those costs are. Electricity prices have month a year ago, the biggest U.S. utility customers, faced being passed on to customers. surged in many parts of the such 12-month increase since with some of their largest bills From New Hampshire to country alongside natural gas 1981, according to a report from in years, are set to pay even Louisiana, customers' electricity prices as exporters ship record the U.S. Bureau of Labor Statis- more this winter as natural gas rates are increasing. The Energy amounts of the fuel abroad be tics. prices continue to climb. Information Administration an- cause of supply shortages in Eu- The strain is particularly Natural gas prices have more ticipates the residential price of rope, which is working to slash acute in New England. The re- than doubled this year because , electricity will average 14.8 its reliance on Russian supplies. gion is investing heavily in re- of a global supply shortage cents per kilowatt-hour in 2022, Natural gas producers, ham- newable energy sources, but made worse by the war in up 7.5% from 2021. The agency strung by pipeline constraints many of those projects aren't Ukraine, and they are expected: forecasts record gas consump-and investors pushing for aus- yet operational, and it still re- to remain elevated for months tion this year amid surging terity, haven't increased pro- Please turn to page A2 as fuel is needed to light and prices, in part because power duction enough to alleviate the heat homes during the winter producers are limited in their pressure.