Some of the Reasons That the Energy Efficiency Gap Exists

question 14

Multiple Choice

Some of the reasons that the energy efficiency gap exists is

• A) consumers have a high discount rate for future savings in energy costs.
• B) consumers may believe that the future energy and cost savings are uncertain.
• C) consumers may lack access to the credit or liquidity required to purchase new energy efficient cars.
• D) all of the above.

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Definitions:

Supply Decreases

A condition in the market where the quantity of a product or service available for sale declines, which can lead to higher prices.

Quantity Supplied

is the amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Supply Increased

A situation in which the quantity of a good or service that producers are willing and able to offer for sale rises, possibly leading to lower prices.

Demand Increased

A situation where the desire or need for a product or service rises, leading to potentially higher prices and/or increased production.