In an Industry,when the Price of Electricity Goes Up,the Company

question 27

Multiple Choice

In an industry,when the price of electricity goes up,the company employs more low-skilled workers.This implies

• A) the substitution effect dominated the scale effect.
• B) the scale effect dominated the substitution effect.
• C) the substitution effect worked in the same direction as the scale effect.
• D) the scale effect was positive.

---

Definitions:

American Ally

A country that is in a mutual agreement with the United States to support each other, especially in terms of defense and international policy.

Battle of Saratoga

A pivotal series of engagements in 1777 during the American Revolutionary War, which resulted in a decisive victory for the American forces and significantly boosted their morale.

Morristown, New Jersey

A historic city in the United States known for its role in the American Revolutionary War and as a winter encampment site for George Washington and the Continental Army.

Redcoats

A historical term for British soldiers, derived from the distinctive red uniforms worn by the army during the 17th to 19th centuries.