Suppose the price elasticity of demand for heating oil is 0.1 in the short run and 0.9 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 by % in the short run and by % in the long run. the change is in the long run because people can respond easily to the change in the price of heating oil.

The answer is given below

Explanation:

a) In the short run, the price elasticity of demand for heating oil is 0.1. Using midpoint method, the price elasticity of demand (Ed) is given as:

b) In the long run, the price elasticity of demand for heating oil is 0.1. Using midpoint method, the price elasticity of demand (Ed) is given as:

the quantity of heating oil demanded will by 4% in the short run and by 36% in the long run. the change is 36% in the long run because people can respond easily to the change in the price of heating oil.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough