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:

More Distant

Describes a relationship, observation, or connection that is less direct, less personal, or further removed in space or time.

Readily Available

Something that is easily obtainable or accessible without significant effort or obstruction.

Value Rationality

A decision-making process focused on achieving a specific goal in a consistent, logical manner, irrespective of the personal utility gained.

Traditional Action

A term often associated with Max Weber, referring to actions motivated by established habits or customs rather than rational calculations or ethical considerations.