Comparative Statics. Demand and supply conditions in the market for utility-generated electric power are important concerns to business and government decision makers. Some of the following factors have the potential to influence the demand or quantity demanded of electric power. Influences on the supply or quantity supplied may also result. Holding all else equal, describe these influences as increasing or decreasing, and indicate the direction of the resulting movement along or shift in the relevant curve(s).
A. An increase in the strategic desirability for large manufacturers to co-generate (or self-generate) power.
B. Congress mandates reduced emissions from coal combustion.
C. Environmentalist groups spark a conservation effort nationwide.
D. A health study finds a positive correlation between number of hours under a heat lamp and reduced risk of cancer.
E. An advance in solar technology creates very efficient collection devices, allowing for cheap and efficient roof-top solar energy.

Question

Quizplus · Accepted Answer

The Answer of Comparative Statics. Demand and supply conditions in the market for utility-generated electric power are important concerns to business and government decision makers. Some of the following factors have the potential to influence the demand or quantity demanded of electric power. Influences on the supply or quantity supplied may also result. Holding all else equal, describe these influences as increasing or decreasing, and indicate the direction of the resulting movement along or shift in the relevant curve(s).
A. An increase in the strategic desirability for large manufacturers to co-generate (or self-generate) power.
B. Congress mandates reduced emissions from coal combustion.
C. Environmentalist groups spark a conservation effort nationwide.
D. A health study finds a positive correlation between number of hours under a heat lamp and reduced risk of cancer.
E. An advance in solar technology creates very efficient collection devices, allowing for cheap and efficient roof-top solar energy.