7. During a three month period the price of natural gas decreased from $4.81 per 1000 cubic ft to $4.44 per 1000 cu ft. As a consequence during this three month period the total quantity of natural...

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Extracted text: 7. During a three month period the price of natural gas decreased from $4.81 per 1000 cubic ft to $4.44 per 1000 cu ft. As a consequence during this three month period the total quantity of natural gas consumed in the US increased from 62.21 billion cubic feet per day to 62.64 billion cubic feet per day. a. Draw a graph with price on the vertical axis and quantity on the horizontal axis. Label your axes with units. Draw a downward sloping demand curve. Draw and label the first quantity and price amounts (Q1 and P,) and the second quantity and price amounts (Q, and P2). b. Use the following formula to plug in your P's and Q's and calculate the price elasticity of demand for natural gas. (Q2-Q1) (Q2+Q1 2 Epemand remember to drop the negative sign %3D (P2-P1) P2+P1) 2