Initially, the price of natural gas is $10 per 1,000 cubic feet, the price of an oil furnace is $2,000, the average annual household income is $40,000, the cost of crude oil is $25 per barrel of heating oil, and the cost of refining oil is $15 per barrel of heating oil.

The equilibrium quantity in this market is ___barrels of heating oil per day, and the equilibrium price is ____per barrel.

Suppose that the cost of refining oil decreases from $15 to $10 for each barrel of heating oil produced. Assuming that the rest of the determinants of supply and demand for heating oil remain equal to their initial values, the market will eventually reach a new equilibrium price of ____per barrel.

Reset the calculator to its initial values. (Hint: When you click in the box of any changed values, you will see a circular arrow to the left of the box that enables you to reset numbers to their initial values.)

Suppose that instead of a change in the cost of producing heating oil, there was an increase in the price of natural gas from $10 to $15 per 1,000 cubic feet. If the price of heating oil were to remain at theinitialequilibrium price you found in the first question, there would be(Surplus or Shortage) of heating oil, which would exert (Downward or Upward)pressure on prices

If My Home Markets and the Price System X Courses Catalog and Study Tools Graph Input Too ? Market for Heating Oil Market for Heating Oil Partner Offers Price of Heating oil (Dollars per barrel) 30 1 Mental Options Supply Quantity 100 Thousands of 60 Thousands of barrels per day ) College Success Tips barrela per day) Career Success Tips Demand Shifters Supply Shifters PRICE (Dollars per barrel Price of Natural Cost of Crude Oil 25 You are eligible for a FREE 7- Demand Dollars per 1,000 day trial of Cengage Unlimited CUBIC nj or Cengage Unlimited Price of an Cil Cost of Refining Oi eTextbooks Furnace (Dollars p Per barrel of resting all) Try for tree an en an ann ton lan 10 Average Annual QUANTITY (Thousands of barrels per day) 40 (Thousands of dollars) Leam more Help initially, the price of natural gas is $10 per 1,000 ru hie feet, the price of an ail furnace is $2,000, the average annual household income is $40,non, Give Feedback the cost of crude oil is $25 per barrel of heating oil, and the cost of refining oil is $15 per barrel of heating oil. The equilibrium quantity in this market is barrels of heating oil per day, and the equilibrium price is |$ | per barrel. Suppose that the cost of refining oil decreases from $15 to $10 for each barrel of heating oil produced. Assuming that the rest of the determinants of supply and demand for heating cil remain equal to their initial values, the market will eventually reach = new equilibrium price of B per barrel. Reset the calculator to its initial values. (Hint: When you click in the box of any changed values, you will see a circular arrow to the left of the box that enables you to reset numbers to their initial values.) Suppose that instead of a change in the cost of producing heating ol, there was an increase in the price of natural gas from $10 to $15 per 1, 010 cubic feet. If the price of heating oil ware to remain = t the initial equilibrium price you found in the first question, there would be " of heating oil, which would exert_ pressure on prices. Grade If Now Save & Continue Continue without saving Type here to search O a 10:00 PM 1/29/2021