In this essay, you should identify and explain the economic factors behind the increase in the price of natural gas being experienced byhouseholds in New South Wale s.In particular, in your essay you should addressthe following questions:(1) Background questionsto zflgverg Where does NSW get most of its natural gas supplies from up to now? What is happening to total domestic gas production inra Ia.(2) Describe the structural change that istaking place in the Australian gas market.(3) Describe what is happening to (and expected to happen to) gas prices for households and businesses in NSW. Explain whythis is happening.(4) What are potential ways out of this problem? What type of policy could addressthis issue, and why?Use the economic tools learned in the course to illustrate and support your claims. A summary of ideasfrom a few articles is not sufficient. Clearly state all our assum tions and usewell-labelled diagramsto illustrate your discussion. Discussions not using economic model/theory will earn row marks. Eigures withoutguiding explanation in the body of the essay are not helpful.!
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