Regulation That Is Based Upon the Cost of Providing the Good

question 68

Multiple Choice

Regulation that is based upon the cost of providing the good or service is known as

• A) rate-of-return regulation.
• B) cost-of-service regulation.
• C) social regulation.
• D) deregulation.

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Definitions:

Perfectly Inelastic

Describes a market scenario where the demand or supply for a product remains unchanged even when the price changes.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in its price.

Becomes More Elastic

Describes a situation where a product or service's demand or supply becomes more sensitive to changes in price.

Supply

The total amount of a product or service available for purchase at any given time, influencing pricing and market equilibrium.