Suppose the Government of Nova Scotia Wants to Reduce the Consumption

question 51

Multiple Choice

Suppose the government of Nova Scotia wants to reduce the consumption of electricity by 5 percent. The price elasticity of demand for electricity is 0.40. You advise the Nova Scotia government to

• A)raise the price of electricity by 12.5 percent.
• B)raise the price of electricity by 2 percent.
• C)lower the price of electricity by 12.5 percent.
• D)stay away from the market for electricity and let the market mechanism fix the problem.
• E)lower the price of electricity by 2 percent.

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Definitions:

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by the parties involved to be enforceable.

Merchant

An individual or business entity engaged in the buying and selling of goods, especially with regards to the provisions of the Uniform Commercial Code (UCC) which define specific responsibilities and protections for merchants.

Memorandum

A written record or communication used in business or diplomatic contexts to outline agreements, policies, or other relevant information.

Parol Evidence Rule

A legal principle in contract law that prevents parties from presenting evidence of prior or contemporaneous agreements that contradict the written terms of a contractual agreement.