A Government Wants to Reduce Electricity Consumption by 10

question 147

Multiple Choice

A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -0.1. The government must ________ the price of electricity by ________.

• A) raise; 100.0%
• B) raise; 10.0%
• C) raise; 1.0%
• D) lower; 20%

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Definitions:

Ambiguous

Open to more than one interpretation; not having one obvious meaning.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or authorizing its use by someone else.

Payable to Order

A financial term indicating that a payment should be made to a specific individual or entity whose name appears on the document.

Drawer

In banking and finance, the person who writes or issues a check or draft, instructing the bank to pay a specified amount to the person or entity named.