suppose the price elasticity of demand  for heating oil is 0.2 in short run and 0.7 in long run a. if the price of heating oil rises from rs 1.80 to rs 2.20 per litre, what happens to the quantity of heating oil demanded in the short run? in the long run? use mid point method b. why might this elasticity depend on the time horizon?

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suppose the price elasticity of demand  for heating oil is 0.2 in short run and 0.7 in long run

a. if the price of heating oil rises from rs 1.80 to rs 2.20 per litre, what happens to the quantity of heating oil demanded in the short run? in the long run? use mid point method

b. why might this elasticity depend on the time horizon?

 

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