A Manager at GE Wants to Make Facility Improvements to Lower

question 77

Multiple Choice

A manager at GE wants to make facility improvements to lower energy consumption at its factories. Which of the following most likely achieves that goal?

• A) install solar panels on the roof of the factory
• B) give employees the day off to participate in a volunteer park cleanup
• C) redesign their line of consumer washing machines to use 30% less water
• D) begin a recycling campaign at the factory

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Definitions:

Price Elasticity of Demand

Price elasticity of demand measures how the quantity demanded of a good or service changes in response to a change in its price, indicating its sensitivity to price changes.

Unitary

A property of elasticity where a change in price causes a proportional change in the quantity demanded or supplied, with an elasticity coefficient of 1.

Incidence

Refers to the impact or burden of a tax, how it is distributed among various participants in the market.

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity supplied divided by the percentage change in price.