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:

Human Capital

The economic value of an individual's experience and skills.

Wage Disparity

The difference in wages between individuals or groups, often analyzed in the context of gender, ethnicity, occupation, or education level disparities.

Efficiency Wages

Wages set above the market equilibrium to increase worker productivity and efficiency.

Unemployment

Describes the situation where individuals who are capable of working and willing to work are unable to find employment.