Suppose That the Short-Run Price Elasticity of Demand for Electricity

question 113

Multiple Choice

Suppose that the short-run price elasticity of demand for electricity is 0.03, and the long-run price elasticity of demand is 1.2. One would classify the short-run elasticity as being ________ and the long-run elasticity as being ________.

• A)elastic; elastic
• B)elastic; inelastic
• C)inelastic; unit elastic
• D)inelastic; elastic

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Definitions:

Physical Material

Substances or components that have mass and occupy space; can be observed and measured physically.

Constant

A fixed value that does not change.

Particles

The small, localized physical entities that make up the structure of matter, ranging from elementary particles to atoms and molecules.

Ordered State

A condition of a system in which its components are arranged in a well-organized pattern or structure, often resulting in reduced entropy.