Homework (Ch 04) 3. Understanding changes in equilibrium price and qu.docx

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Homework (Ch 04) 3. Understanding changes in equilibrium price and quantity Suppose you are an analyst in the oil refinery Industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do 50, you must consider factors that can affect the supply of and demand for heating oil. Determinants of the demand for heating oil include household income, the price of an oil furnace (a complementary good for heating oil), and the price of natural gas (a substitute good for heating oil). Determinants of the supply of heating oil include the cost of crude oil and the cost of refining crude oil into home heating oil. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. (Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) Graph Input Tool Market for Heating ou Market for Heating Oil Price of Heating oil
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