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Imagine you are the owner of a natural gas company. you can either extract as much of the resource as fast as possible or delay extraction until a future time. projections indicate that consumers will use more natural gas in the future even though the resource is becoming scarce, and therefore a higher price for natural gas is anticipated for the future. what would you do in the present

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TonieCee

Answer: Given the options of either extracting now, or extracting in future when gas prices would be higher, extraction in the future is the better option.

Explanation: Since projections have shown that the demand for natural gas will increase in the future, leading to a higher price for the resource, it will make more economic sense to delay or limit extraction now and extract more in the future when the price would have been higher.

By doing so, the revenue gotten will increase and Gas company will by that time control a major market share.

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