Where Q is the quantity of natural gas Tcf and p is the price of natural gass in dollars per mcf and po is the price of oil.
A) Given that the average price of a barrel of oil is $50 solve for equilibrium .
B) The government decides to impose a price control of 3000 per mcf. Caclcuate the impact this would have on the quanity demanded of natural gas, the quanity supplied of natural gass and the amound exchanged in the market.
Is there a surplus, equlibrum or shortage under the controlled price ?