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If Household Expenditures on Electricity Remain Constant When the Price

Question 23

Multiple Choice

If household expenditures on electricity remain constant when the price of electricity increases,the price elasticity for electricity is


A) greater than one (demand is elastic) .
B) less than one (demand is inelastic) .
C) one (demand is unit elastic) .
D) exactly zero.
E) not determinable from the information given.

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