WEST HILLS
COLLEGE
ECONOMICS
Economics: California Electricity Supply and Demand
Note: S-D Means Supply and Demand
Assume no price ceiling unless specifically stated
WEST HILLS
COLLEGE
ECONOMICS
Economics: California Electricity Supply and Demand
Note: S-D Means Supply and Demand
Assume no price ceiling unless specifically stated
Name ........assign 3
1. Draw a S-D (Supply and Demand) graph to represent the California
electrical market under a situation of free market pricing. Show the equilibrium
price and quantity.
2. Use S-D graph to show the effect of a very hot summer on the equilibrium
price and quantity of electricity (extra air conditioning).
3. Use S-D graphs to show the effect on equilibrium price and qauntity
of electricity of an increase in population of California. Show initial
and final equilibrium prices and quantities.
4. Use S-D graphs to show the effect on equilibrium price and qauntity
of electricity of a statewided increase in industrial production. . Show
initial and final equilibrium prices and quantities.
5. Use S-D graphs to show the effect on equilibrium price and qauntity
of electricity of an increase in the price of natural gas (used to fuel
the electrical turbines). Show initial and final equilibrium prices
and quantities.
6. Use S-D graphs to show the effect on equilibrium price and qauntity
of electricity of a decrease in rainfall in neighboring states that normally
export hydroelectric power to CA. Show initial and final equilibrium prices
and quantities.
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