The development of fracking (pumping highly pressurised water into rock to release the gas inside) has enabled the release of vast natural gas stores throughout the world, particularly the United States. Since 2013, 95% of all new wells opened have used fracking.

Answer the following questions:

1. What effect will the development of fracking technology have on the supply of gas?. Type U for unknown, L for shift left, R for shift right, N for no effect.
2. If the United States Government implements a tax on natural gas production, resulting in a shift smaller in magnitude than the shift resulting from fracking (ceteris paribus), how would the equilibrium quantity of natural gas compare to before introducing both the tax and fracking technology?. Type L for lower, H for higher, N for no change, U for unknown and need more information.
3. If existing suppliers of natural gas expect gas prices will fall for the next two years, what impact would this be expected to have on thecurrentsupply?. Type N for no effect at all, I for increase supply, D for decrease supply, U for unknown and need more information.