# Suppose the price elasticity of demand for heating oil is 02. in the short run and 0.7 in the long run. a. If the price of heating oil rises from $1.80 to$2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the long run? (Use the midpoint method in your calculations.) b. Why might this elasticity depend on the time horizon?

### Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126

### Principles of Economics (MindTap C...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305585126

#### Solutions

Chapter
Section
Chapter 5, Problem 3PA
Textbook Problem

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