Assume the Demand for Electricity, a Necessity with Few Substitutes

question 42

Multiple Choice

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the cable company raised its rates by 10 percent, we would expect a

• A)10 percent decrease in quantity demanded.
• B)2 percent increase in quantity demanded.
• C)10 percent increase in quantity demanded.
• D)2 percent decrease in quantity demanded.
• E)5 percent decrease in quantity demanded.

---

Definitions:

Emotional Labor

The process of managing feelings and expressions as part of fulfilling the emotional demands of a job role.

Fight-or-flight Response

A physiological reaction occurring in response to a perceived harmful event, attack, or threat to survival.

Relaxation Response

A physical state of deep rest in which one experiences a slower respiration and heart rate and lowered metabolism; a standard technique for reducing stress.

Role Underload Stress

Stress experienced when an individual has too few responsibilities or tasks, leading to feelings of underutilization or boredom.