If a 15 percent reduction in the price of electricity per kilowatt hour has no impact on the total electricity consumption,we can infer that in the short run,the demand for electricity is _____.
A)perfectly inelastic
B)perfectly elastic
C)unitary elastic
D)relatively inelastic
E)relatively elastic

Question

Quizplus · Accepted Answer

If a 15 percent reduction in price has no impact on the total electricity consumption, it means that consumers are not altering their consumption even though the price has changed. This implies that the demand is perfectly inelastic, where a change in price has no effect on the quantity demanded.

If a 15 Percent Reduction in the Price of Electricity