nitially, 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
thousand barrels of heating oil per day, and the equilibrium price is
$
per barrel.