If the demand for natural gas as an automotive fuel can be catalyzed, widespread use will reduce dangerous petroleum emissions.Given on the diagram below (a) are the natural gas market demand and supply curves and the equilibrium price and quantity (Pe, Qe) before any policy change is undertaken that attempts to increase the use of natural gas as automotive fuel.

Congress finally agreed to subsidize the placement of one natural gas fuel pump per town.Diagram on (a) the impact on natural gas demand of an increasing accessibility to natural gas that the increasing number of pumps will have.At the same time the demand-increasing pump policy is being implemented, mine safety engineers decide pumping thousands of gallons of "fracking" chemicals intothe Earth'ssubstrata is causing an increasing number of earthquakes in the vicinity of gas-producing wells.To reduce the risk of earthquakes, engineers decided the amount of chemicals pumped into the Earth must be decreased by mandating a supply-reducing production rate of natural gas.Also diagram this reduction on(a).What does your analysis say will happen to the equilibrium price in this market?Will it increase, decrease or is it indeterminate.What will happen to the equilibrium quantity in this market?Will it increase decrease or is it indeterminate?Explain in(b).

a) GRAPHICALANALYSIS

b)WRITTEN