Use only the information given in a question to answer that questionassume ceteris paribus unless otherwise specified.

Answer all questions correctly.

1. In November 2021, National Grid, the primary natural gas seller/supplier to Central New York (CNY), sent an email to its customers which included the following statement:

"As you may have heard on local and national news reports, natural gas prices have risen worldwide in recent months due to increased global demand and lagging natural gas production. While National Grid can't control this global rise in natural gas prices, we are committed to helping you manage higher energy bills."

When its input costs rise, a firm typically complains about it. Consider National Grid's production function for natural gas: it buys natural gas, transports it, then puts it into a form for residential and commercial consumption. To make a profit, it then charges its customers for their usage. Since the cost of the natural gas (one of its inputs) was rising, why didn't National Grid complain? Explain your answer solely in the context of elasticities. Keep your answer under page.

2. Find a news story in which the weather (short run phenomenon) or climate change (long run phenomenon) has influenced or is influencing a specific market.Identify the market (i.e., the good/service being sold). How did the weather/climate influence buyer and/or seller behavior? Do the facts in the story align with comparative statics analysis? Illustrate the market you chose and briefly discuss how the weather/climate presented a shock to this market. Keep your answer under 1 page.