Assume the Demand for Electricity, a Necessity with Few Substitutes

Multiple Choice

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the electric company raised its rates by 10 percent, we would expect a

A) 10 percent decrease in quantity demanded.
B) 2 percent increase in quantity demanded.
C) 10 percent increase in quantity demanded.
D) 2 percent decrease in quantity demanded.
E) 5 percent decrease in quantity demanded.