If the demand for electricity is price inelastic, one can conclude that the demand for the engineers and technicians working on the electric grid is sensitive to the wage rate of these workers.

Question

Quizplus · Accepted Answer

The demand for electricity being price inelastic means consumers' demand for electricity does not significantly change with price changes. This does not directly correlate to the sensitivity of demand for engineers and technicians to their wage rates, as the demand for these workers is more closely related to the technical and infrastructural needs of the electricity grid rather than the price elasticity of electricity demand.

If the Demand for Electricity Is Price Inelastic, One Can