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A Government Wants to Reduce Electricity Consumption by 10

Question 147

Multiple Choice

A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -0.1. The government must ________ the price of electricity by ________.


A) raise; 100.0%
B) raise; 10.0%
C) raise; 1.0%
D) lower; 20%

Correct Answer:

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