Suppose the price elasticity of demand for heating oil is 0.1 in the short run and 0.9 in the long run. If the price of heating oil rises from $1.80 to $2.20 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 long 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 0.1 in the short run and 0.9 in the long run. If the price of heating oil rises from $1.80 to $2.20 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 long run because people can respond easily to the change in the price of heating oil.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3PA: Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long...
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Suppose the price elasticity of demand for heating oil is 0.1 in the short run and 0.9 in the long run.
If the price of heating oil rises from $1.80 to $2.20 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 long run because people can respond easily to the change in the price of heating oil.
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