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

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 (RISE/FALL) by ____ % in the short run and by ______% in the long run. The change is (LARGER/SMALLER) in the short run because people can respond (MORE/LESS) easily to the change in the price of heating oil.

Expert Solution

Rahul Sunny answered 2 years ago

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