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 $1.90 to $2.10 per gallon, the quantity of heating oil demanded will fall by 40% in the short run and by 14% in the long run. the change issmaller in the long run because people can respond less easily to the change in the price of heating oil.
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Ответ:
Quantity demanded will fall by 2.1% in the short-run and by 7.3% in the long-run, larger
Explanation:
=
= 10.25%
Short-run elasticity is 0.2
Long-run elasticity is 0.7
Therefore,
= 2.10%
= 7.35%
Quantity demanded will fall by 2.1% in the short-run and by 7.3% in the long-run.
The change is larger in the long run because people can respond less easily to the change in the price of heating oil.
Ответ:
avoiding conflict does not make it go away