If the local electricity utility wants to raise revenue,it should _______ its price because demand for electricity is likely to be ________.

Question

Quizplus · Accepted Answer

If the local electricity utility wants to raise revenue, the best option would be to raise its price because the demand for electricity is likely to be inelastic, meaning that a price increase will not significantly reduce the quantity of electricity demanded. Therefore, raising the price would not result in a significant decrease in revenue, allowing the utility to increase its revenue.

If the Local Electricity Utility Wants to Raise Revenue,it Should