The price elasticity of demand for crude oil in the U.S. has been estimated to be...
- The price elasticity of demand for crude oil in the U.S. has been estimated to be -0.061 in the short run and -0.453 in the long run. Is demand for crude oil in the U.S. price elastic? Why would the demand for crude oil be more price elastic in the long run than in the short run?
Homework Answers
Ans) The demand for crude oil in the U.S. is price inelastic.
The demand for crude oil is more elastic in the long run because it takes time to change the preferences. While the demand is more inelastic in the short run.
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