For Question 1, consider the New England market for

electricity prior to Winter 2022-23 by considering this setting roughly

one year ago, in December 2021.

Assume that in December of 2021, the market for electricity was in a

short-run equilibrium.

Draw a graph that shows supply and demand for electricity

market in its December 2021 equilibrium. This graph will serve

as a starting point for your analysis in Questions 2 through 5.

• When drawing this graph, please assume that the demand curve

is downward sloping and supply curve is upward sloping.

• Clearly show the market equilibrium in December 2021, labeling

the equilibrium price and quantity.

• Please remember to clearly label your axes, with P on the

vertical axis and Q on the horizontal axis.

• Label the supply curve as So; demand curve as Do: the

equilibrium price as Po; and the equilibrium quantity as Qo'