Question: In Example 9.1, we calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $568

In Example 9.1, we calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $568 billion; This calculation was based on a price of oil of $50 per barrel and utilized the following equations: Step-ls 05 = 15190 + 032135 + 0.05P0 Demand. 09 = 0.021.50\" + 0.69130 where 03 and OD are the quanties supplied and demanded, each measured in trillion cubic feet {Tc, PG is the price of natural gas in dollars per thousand cubic feet {Sfml}, and PD is the price of oil in dollars per barrel ($.I'bi. If the price of oil were 560.00 per barrel, what would be the free-market price of gas? With a $60.00 price of oil per barrel, the freemarket price of gas would be $ 3.93 per thousand cubic foot. (Enter your renance rounded to two decinmipiecesJ How large a deadweight loss would result if the maximum allowable price of natural gas were 5&00 per thousand cubic feet? Deadweight loss if the price of natural gas were regulated to be 56.00 would be $ billion [Enterycurresponse rounded to two decimalpieces.)

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