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Logic & Programming
Pages 6 (1506 words)
Choose ONE product/service of a popular company or any company which is listed on a stock exchange market Contents Introduction 3 Demand and Supply Factors 3 Market Structure 3 Necessities to compete in the market 4 Elasticity Concepts 5 Efficient use of resources 5 Economic Growth 5 Unemployment 5 Inflation 5 Balance of Payments 6 Business Cycle 6 Reference 6 Introduction The company that has been taken in the essay is BG Group Plc, one of the leading oil and gas producers in United Kingdom.
BG Group is one of the listed companies in the London stock Exchange (LSE). The British Gas plc divested Centrica and the company was created. BG Group marks its presents in 5 continents. Demand and Supply Factors First consider the demand side factors which include weather, demographics, economic growth, consumption of fuel, storage of the products and exports. The cyclical pattern seems to be the demand pattern for natural gas. The demand follows the step path in the coldest months while the opposite is the nature of demand in the hotter months (EIA, 2008). The demand tends to rise slightly in summer to meet the demand of natural gas for electric generators. Demand also increases when there is growth in the economy. Cyclical pattern is the nature of the demand curve. Storage of the produced is difficult for the companies in this sector and so excess supply cause a fall in the price level. The supply side factors are the capacity of the pipeline through which the transportation of natural gas takes place, drilling of the gas and technological advancement. The price of electricity also has a major role to play in the demand and supply frameworks of natural gas. ...
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