If Household Expenditures on Electricity Remain Constant When the Price

question 23

Multiple Choice

If household expenditures on electricity remain constant when the price of electricity increases,the price elasticity for electricity is

• A)greater than one (demand is elastic).
• B)less than one (demand is inelastic).
• C)one (demand is unit elastic).
• D)exactly zero.
• E)not determinable from the information given.

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Definitions:

Logarithmic Approach

A method involving the use of logarithms, often employed in mathematical modeling, data analysis, and algorithm design to simplify complex problems.

Learning Curve

represents the rate at which a new skill is learned or proficiency is gained, often graphed as performance improvements over time with increased experience.

Logarithmic Approach

Utilizing logarithms, a mathematical concept related to exponents and power functions, to solve problems or understand data trends.