... cross-price elasticity of supply is gPO*QG*⎛ ⎝ ⎜ ⎞ ⎠ ⎟ , which we know to be 0.1. Solving for g, 0.1= g820⎛ ⎝ ⎞ ⎠ , or g = 0.25. The values for d and b may be found with ... 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 ... 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,...