Large and long-continued increases in the demand for electricity will tend to result in
A) a higher cost of generating electricity.
B) a higher price for electricity but no increase in the cost of generating it.
C) a reduction in the quantity of electricity demanded as a consequence of higher prices.
D) an increase in the quantity of electricity demanded and hence a decrease in its price.
A
You might also like to view...
In order to derive a market demand curve from individuals' demand curves, we add up the
A. incomes of all buyers, assuming that their tastes remain constant. B. various individuals' quantities demanded at each price. C. various prices that each buyer is willing and able to pay. D. total number of buyers in the market at each time period.
An increase in a small open economy's government budget deficit that reduces national saving and the current account balance causes an
A) increase in desired saving. B) increase in the world real interest rate. C) increase in exports. D) increase in absorption.
If the cross-price elasticity between goods A and B is negative, we know the goods are:
A. inferior goods. B. substitutes. C. inelastic. D. complements.
Behavioral economists focus on the assumption that
A. consumers have limitations that prevent them from examining all possible choices when they make decisions. B. consumers are irrational and so they do not seek to maximize utility. C. consumer choice is perfectly predictable by basic economic theory. D. consumer behavior cannot be predicted by economics.