Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. If the price of heating oil rises from $1.20 to $1.80 per gallon, the quantity of heating oil demanded will by in the short run and by in the long run. The change is in the short run because people can respond easily to the change in the price of heating oil.
Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. If the price of heating oil rises from $1.20 to $1.80 per gallon, the quantity of heating oil demanded will by in the short run and by in the long run. The change is in the short run because people can respond easily to the change in the price of heating oil.
Chapter6: Elasticity
Section: Chapter Questions
Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...
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Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run.
If the price of heating oil rises from $1.20 to $1.80 per gallon, the quantity of heating oil demanded will by
in the short run and by
in the long run. The change is in the short run because people can respond easily to the change in the price of heating oil.
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