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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 isbarrels of heating oil per day, and the equilibrium price isper barrel. suppose that the cost of refining oil increases from $15 to $25 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 ofper 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 a decrease in the price of an oil furnace from $2,000 to $1,900. if the price of heating oil were to remain at the initial equilibrium price you found in the first question, there would be of heating oil, which would exert pressure on prices.

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