If Electricity Costs $7.064 / \mathrm { kW } \cdot \mathrm { h }$

question 119

Multiple Choice

If electricity costs $7.064 / \mathrm { kW } \cdot \mathrm { h }$ , how much would it cost you to run a $120 - \mathrm { W }$ stereo system $4.0$ hours per day for $4.0$ weeks?

• A) \(\$ 2.66\)
• B) \(\$ 0.14\)
• C) \(\$ 0.95\)
• D) \(\$ 1.62\)

---

Definitions:

Perfectly Elastic

Describes a situation in which any small change in the price of a good leads to an infinite change in the quantity demanded or supplied, typically represented by a horizontal line on a graph.

Price Elasticity

An assessment of the responsiveness of product demand to variations in its cost.

Demand Curve

A graphical representation showing how the quantity of a good demanded by consumers changes as its price changes, holding other factors constant.

Cross-Price Elasticity

Measures the responsiveness of demand for one good to a change in the price of another good.