Changes in the Demand and Supply of Cooking Gas in the U.S Research Paper

Changes in the Demand and Supply of Cooking Gas in the U.S - Research Paper Example This paper describes current state of American market for cooking gas in terms of the volumes of demand and supply at a time of the introduction of new technology of gas production. There is also a grafical illustration of these changes in the diagram in the paper. Cooking gas is one of the basic items whose demand and supply has been very unsteady over the years 2011-2013 . These situation led to changes in the prices for cooking gas in the U.S. The new engineering tools have resulted into boom in the supply of natural gas products, hence a change in the consumption pattern for cooking gases. Natural gas has become a preferred energy source in the U.S. and has served as the replacement of the old and popular coal-fired generations and nuclear gas in some circumstances. The U.S. has faced a new challenge in meeting the growing demand for natural gas products, particularly cooking gas, as the supply of natural gas products with the the introduction of new technology significally rised. The report by the EIA revealed that the demand for natural gas has been fueled by the fast increasing industrial energy demand. The industries are preferring natural gas over other sources of energy given its economics value such as reduced negative externalities such as pollution and affordability These changes in the prices of natural gas have given rise to speculative demand for natural gas in the U.S. Given the price elasticity of demand for natural and cooking gases in U.S., any little change in the demand for these products results into a significant change in prices.