Management and Consumers - Essay Example

Both the demand and supply curves would undergo a change owing to the spontaneous cut down of gas supply in Arizona. The demand curve would fall on the right side and the market equilibrium would be unstable. This is because the gas company would not be able to meet the demands of the consumers and hence the supply should be increased to meet the demand. Moreover, the supply curve would also shift towards the left side as the supply of the gas should be increased in order to satisfy the demand of the consumers of gas.

Both the demand and supply curve would shift towards the opposite side as mentioned above. As the demand curve would move towards the right and supply curve towards the left this would result in spontaneous price inflation. Thus automatically because of the cut down in gas supply, the price of gas would increase in order to compromise with the demands of the consumers.