If electricity prices rise substantially but quantity demanded does not decrease very much, then electricity is probably:
A) elastic.
B) inelastic.
C) unit elastic.
D) absolute.

Question

Quizplus · Accepted Answer

Electricity is considered inelastic because the quantity demanded does not decrease significantly even when the prices rise substantially. This indicates that consumers continue to buy electricity at nearly the same rate despite price increases, showing a low sensitivity to price changes.

If Electricity Prices Rise Substantially but Quantity Demanded Does Not