They kinda do, but it’s not as easy as we learned in Grade 8 because there is greedy investors, cartels and a worldwide market with all kinds of different players involved (including states that try to keep the price low for voters and others that try to get it even higher for their leaders’ pockets.
And of course a 20% decrease in supply doesn’t mean 20% increase in price, but the price will increase until there is 20% less demand, which doesn’t happen because whole countries are dependent on gas as they did not invest in renewable energy.
if only gas prices followed supply demand economics we learned in Grade 8.
They kinda do, but it’s not as easy as we learned in Grade 8 because there is greedy investors, cartels and a worldwide market with all kinds of different players involved (including states that try to keep the price low for voters and others that try to get it even higher for their leaders’ pockets.
And of course a 20% decrease in supply doesn’t mean 20% increase in price, but the price will increase until there is 20% less demand, which doesn’t happen because whole countries are dependent on gas as they did not invest in renewable energy.