Assume you’ve just been assigned to a project to determine the future demand for natural gas in a rapidly growing community where the population is expanding because of the influx of several large employers. The community is in a geographical area with four distinct seasons that are characterized by cold snowy winters and hot summers. The population in the community is mostly middle class with larger than average families. There is an existing utilities structure with adequate supplies of natural gas as well as other competing energy products. You can assume that all the factors of a general demand function as described in your text beginning on page 40 have been considered.

1. Describe five additional factors that you consider would be important for forecasting the demand for natural gas over the next decade. (Keep in mind the data must be quantifiable, you will have to identify a process for collecting the information over an appropriate time period, and the data must be relevant as a factor in accurately determining the demand for natural gas.)

2. Briefly outline the processes you would use in gathering and analyzing these five additional factors for forecasting the demand curve for natural gas.

3. Provide appropriate feedback for your peers in terms of the feasibility of the significance of the factors outlined and the processes described.

UPDATE

The list of factors listed on page 40 are:

price of good or service

consumers' income (generally per capita)

price of related goods and services

taste pattern of consumers

expected price of the good in some future period

number of consumers in the market