... Chapter 2: The Basics of Supply and Demand b. Now estimate the short-run price elasticity of demand for ... rather drink roasted coffee instead of paying more for a low quality substitute. 16 Chapter 2: The Basics of Supply and Demand If the price of natural gas had not been regulated and the price ... a=850+85.7*3.76=1172.3. The equation for the demand curve is therefore Q=1172.3-85.7P. 15 Chapter 2: The Basics of Supply and Demand model above to calculate what would happen to the price of oil...