Fairly inelastic in short run and more elastic in long run

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Consumer demand for oil—including oil in the form of both gasoline and home heating oil—is fairly inelastic in the short run and more elastic in the long run. In the short run, will a shift in the supply of oil (say, caused by a disruption in Mideast production) affect price or quantity more? What about in the long run? Illustrate your answer with the appropriate diagrams.

Reference no: EM131004759

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