One Reason the Demand for Electricity Is Probably More Price

question 92

Multiple Choice

One reason the demand for electricity is probably more price elastic than the demand for table salt is that

• A)people react to a change in the price of electricity in the long run but react to a change in the price of salt in the short run.
• B)there are more substitutes for electricity than for table salt.
• C)people react to a change in the price of electricity in the short run but react to a change in the price of salt in the long run.
• D)a change in the price of electricity is likely to be temporary compared to a change in the price of table salt.
• E)electricity takes up a larger proportion of one's income than does table salt.

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Definitions:

Operating Cycle

The average time period it takes for a business to convert its inventory into cash through sales.

Business Entity

An organization that engages in economic activities, recognized as a separate legal entity from its owners.

Less than Six Months

A term used to describe a period or duration that does not exceed six months.

More than One Year

Refers to a time frame in accounting and finance that indicates durations or periods extending beyond a twelve-month or one-year period.