Question

Exercise 10 In Example 9.1, we calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $5.68 billion. This calculation was based on a price of oil of $50 per barrel and utilized the following equations: Supply: QS = 15.90 +0.72PG + 0.05P. Demand: QD = 0.02 - 1.8P& +0.69P. where QS and Q are the quantities supplied and demanded, each measured in trillion cubic feet (Tcf), Pg is the price of natural gas in dollars per thousand cubic feet ($/mcf), and Po is the price of oil in dollars per barrel ($/b). If the price of oil were $70.00 per barrel, what would be the free-market price of gas? With a $70.00 price of oil per barrel, the free-market price of gas would be $ per thousand cubic foot. (Enter your response rounded to two decimal places.)

Answer 1

) که م + وح 72 - 0 + ۹۰.کر - کم . .ه+ و 12 - 0 . 02 = 02 Po=$70 (%) 0 . 05 + 0 . 7a + - qo + 0 . 7a67 . ك = كم وہ ک )009 - 26 / - له 0 . 0 = ( 2 = 8 : 3 - 03 ) -2 د. ( در 48 = اية : وهبه .9 ا ر وه له د. ح % 6 / 9 ا ./( - 8 - 2 / ح کی 70و = ( }