Why might the elasticity depend on the time horizon

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Suppose the price elasticity of demand for heating oil is .2 in the short run and .7 in the long run. Use mid-point methods in A and B and show your work. A) If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of oil demanded in the short run? B) In the long run? C) Why might the elasticity depend on the time horizon?

Reference no: EM131003319

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