Suppose That the Short Run Price Elasticity of Demand for Electricity

question 12

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;unitary elastic
• D)inelastic;elastic

---

Definitions:

Managed Portfolio

An investment portfolio that's actively managed by a professional, aiming to achieve specified investment goals.

Alpha

A metric used to measure the performance of an investment relative to a benchmark, reflecting the excess return of the investment compared to the overall market performance.

Time-Weighted Return

A method of calculating investment returns that eliminates the effects of cash flows into and out of the portfolio, focusing solely on the investment's performance.