Relating to the Economics in Practice on Page 339: Europe

Multiple Choice

Relating to the Economics in Practice on page 339: Europe has a carbon tax, and electricity producers are among the largest of the carbon producing firms. The carbon tax increased the price of electricity, and researchers found that the amount of the tax that was actually passed through to consumers reflected a ________ aggregate demand for electricity.

A) perfectly inelastic
B) very inelastic
C) slightly elastic
D) unit elastic