A Government Wants to Reduce Electricity Consumption by 40

question 169

Multiple Choice

A government wants to reduce electricity consumption by 40%. The price elasticity of demand for electricity is -10. The government must ________ the price of electricity by ________.

• A) raise; 4.0%
• B) raise; 0.25%
• C) raise; 1.25%
• D) lower; 0.25%

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Definitions:

Orogeny

The process of mountain formation, especially by the folding and faulting of the Earth's crust, typically as a result of the collision of tectonic plates.

Tectonic Activity

The movement and behavior of the Earth's lithosphere, including the processes of plate tectonics that lead to earthquakes, volcanic eruptions, and the creation of mountain ranges.

Continental Rifting

A tectonic process whereby the continental lithosphere stretches and breaks apart, leading to the formation of new ocean basins.

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.