The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-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)unit-elastic
D)relatively inelastic
E)relatively elastic

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-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)unit-elastic 
D)relatively inelastic 
E)relatively elastic

Quizplus · Accepted Answer

When there is no change in total electricity consumption despite a 15% price reduction, it indicates that consumers do not have any substitutes or alternatives for electricity and are willing to pay the same price regardless of the change in price. This suggests that the demand for electricity is perfectly inelastic in the short run.

The Figure Given Below Shows the Demand Curves for Five