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Question: Assume the elasticity of oil supply is 0.01 and that the elasticity of oil demand is -0.01. You k...

Show transcribed image text Assume the elasticity of oil supply is 0.01 and that the elasticity of oil demand is -0.01. You know that there has been a shortfall in the supply of oil of 10%. What is the expected change in the price of oil? a) 5 percent b) 20 percent c) 15 percent d) 50 percent e) We do not have enough information

Assume the elasticity of oil supply is 0.01 and that the elasticity of oil demand is -0.01. You know that there has been a shortfall in the supply of oil of 10%. What is the expected change in the price of oil? a) 5 percent b) 20 percent c) 15 percent d) 50 percent e) We do not have enough information