If electricity demand is inelastic, and electric rates increases, which of the following is likely to occur?
A. Quantity demanded will fall by a relatively large amount
B. Quantity demanded will fall by a relatively small amount
C. Quantity demanded will rise in the short-run, but fall in the long run
D. Quantity demanded will fall in the short-run, but rise in the long run
Answer:B
If electricity demand is inelastic, and electric rates increases, which of the following is likely to occur?
A. Quantity demanded will fall by a relatively large amount B. Quantity demanded will fall by a relatively small amount C. Quantity demanded will rise in the short-run, but fall in the long run D. Quantity demanded will fall in the short-run, but rise in the long run