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The Demand for Electricity Has Been Found to Be Inelastic

Question 122

Multiple Choice

The demand for electricity has been found to be inelastic.The most likely explanation for this finding is that


A) electricity is a luxury.
B) the fraction of income spent on electricity is trivial.
C) few substitutes exist for electricity.
D) electricity is a monopoly market.
E) pollution regulation has made electricity expensive.

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