Question

At the beginning of the year, the market for electricity was in equilibrium. In June, a summer heat wave caused people to use more air conditioning. What effect does the heat wave have on the market for electricity

Answer 1

Answer:

The Demand curve will shift rightwards and the equilibrium point will move along the supply curve increasing the price of the good as well as demand in the short-term in the long term (after summer) the demand will return to their original point or close to it.

Explanation:

The demand increase for seasonal effect this will push the energy cost up and quantity demanded depend upon how inelastic is the demand to changes in prices, but most probably will increase at first and then contracct as the price rises