Suppose That the Demand for Electricity Has Been Found to Be

question 55

Multiple Choice

Suppose that the demand for electricity has been found to be inelastic.The most likely explanation for this finding is that:

• A)electricity is a luxury commodity.
• B)the fraction of income spent on electricity is large.
• C)few substitutes exist for electricity.
• D)electricity is a monopoly market.

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Definitions:

Fifth Amendment Right

A constitutional provision that protects individuals from self-incrimination, mandates due process of law, and prohibits the government from seizing private property without fair compensation.

Self-Incrimination

The act of exposing oneself to prosecution by making statements or producing evidence that could prove one's own criminal guilt.

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and guarantees equal protection under the laws.

Closely Held Corporations

Corporations that have a small number of shareholders and whose shares are not publicly traded, often managed by the shareholders.