A Miami restaurant has created atmosphere through its subtle use of blue and green lighting, ceiling fans over each table, and frozen drinks. If its electrical energy supplier raises its prices, the restaurant will most likely ________.

Question

Quizplus · Accepted Answer

The restaurant has created an atmosphere through its lighting and other elements, which suggests that it is unlikely to change its operation or reduce its electricity use significantly in response to a price increase. Therefore, the demand for electricity is likely to be inelastic.

A Miami Restaurant Has Created Atmosphere Through Its Subtle Use