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.

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.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; dogs;