3. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and...

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3. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. P=-5

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?

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Essentials Of Economics

ISBN: 9780324590029

5th Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 04, 2024 10:00 AM

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3. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and...

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Essentials Of Economics

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