The demand for electricity is more elastic in the long run than in the short run because
A. consumers can shift to more efficient electrical appliances in the long run.
B. solar energy will eventually replace electricity in the long run.
C. government regulation of electricity producers is most effective in the long run.
D. more electricity can be produced in the long run.
Ans: A. consumers can shift to more efficient electrical appliances in the long run.
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In order to maximize profits, a firm that can sell all it wants without affecting price should produce
a. where average variable costs are minimized. b. where marginal cost is equal to average variable costs. c. where marginal cost is equal to price. d. where marginal cost is a minimum.
One determinant of the derived demand for a resource is the
a. price of the product made using the resource b. extra cost of the resource c. marginal resource cost of the resource d. availability of the resource in the marketplace e. quantity of the resource demanded
Which one of the following states a central element of the economic way of thinking?
What will be an ideal response?
The convergence theory is based on the idea of:
A. increasing rates of income per capita. B. decreasing income per capita. C. increasing opportunity costs. D. decreasing marginal returns.