Question

mework2-1.BasicsofElasticity.doc ynload Homework2-1.BasicsofElasticity.doc (53.5 KB) 18. Why are electricity prices for consumers often inelastic in the short-run, but more elastic in the long-run? A) In the short-run consumers don't really have any choice they must buy from the power company. B) In the long-run, consumer can either conserve power or find alternatives like solar power or maybe even other smaller local power companies. C) Better technology for ovens, refrigerators, washing machines and even computer software that tracks power usage can give consumers more ways to save money. D) All responses above are correct. revious

Answer 1

18. The electricity prices for consumers often inelastic in the short run ,but more elastic in the long run because in the long run , consumer can either conserve power or find alternatives like solar power or may be even other smaller local power companies. Hence, option(B) is correct.