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At the end of February 2022 and thereafter, the Russian invasion of Ukraine had a signicant impact on energy markets. As a result, natural gas

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At the end of February 2022 and thereafter, the Russian invasion of Ukraine had a signicant impact on energy markets. As a result, natural gas prices increased across most of the world. Higher natural gas prices had increased the cost of producing electricity since natural gas is used as fuel by many power plants. Analyze what happened to the market for electricity in New England in late February 2022. Assume that the heating season temperatures in the region, which inuence the use of electricity by consumers, had not changed between December 2021 and late February 2022. 0 Using your graph from Question 1, depict the changes that have taken place in the electricity market. Clearly show any shifts in demand and/olsupply curve(s). Label any curves that have shifted as D1 and/or 51; and show the direction of the shift graphically with an arrow. 0 Clearly show the new market equilibrium if it has changed from your answer to Question 1. g Label the new equilibrium price as P1 and equilibrium quantity as Q1

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