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In the second quarter of 2022 Australian consumers were faced with relatively high gas prices. Some commentators have argued that, among other issues, Australian consumers were facing high gas prices because of the following factors:

1. Failing Australian coal-fired generators are being replaced by gas generators.
2. The cold snap on the east coast of Australia has increased the average household consumption of energy.

Analyse how each of the two factors above has contributed to an increase in the price of gas for Australian buyers.

Use a diagram of supply and demand to illustrate your answers for each of the two factors. Make sure to comment on the impact on equilibrium price and quantity, and changes in supply and demand curves.