... drastically affect demand because people must have this good. Many people, on the other hand, may view instant coffee, as a convenient, though imperfect, substitute for roasted coffee. For example, ... 5PG, and Supply: QS = 14 + 2PG + (0.25)(16) = 18 + 2PG. Equating supply and demand and solving for the equilibrium price, 18 + 2PG = 60 - 5PG, or PG = $6. The price of natural gas ... equilibrium price and quantity. We know that = $8 and Q = 20 trillion cubic feet (Tcf). Solving for e, PO*G*PO*G*13 Chapter 2: The Basics of Supply and Demand 5 CHAPTER 2...