If Pacific Power and Light increased its rates by 10 percent and the demand for power remained the same, the demand would be:
A) elastic.
B) minimal.
C) minor elasticity.
D) variable.
E) inelastic.

Question

Quizplus · Accepted Answer

If the demand for power remained the same despite a 10 percent increase in rates, it indicates that the demand is inelastic, meaning consumers' demand does not change with price changes.

If Pacific Power and Light Increased Its Rates by 10