Large and long-continued increases in the demand for electricity will tend to result in
A) a higher cost of generating electricity.
B) a higher price for electricity but no increase in the cost of generating it.
C) a reduction in the quantity of electricity demanded as a consequence of higher prices.
D) an increase in the quantity of electricity demanded and hence a decrease in its price.
A
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Assume that expected inflation is based on the following: ?et = ??t-1. If ? = 0, we know that
A) a reduction in the unemployment rate will have no effect on inflation. B) low rates of unemployment will cause steadily increasing rates of inflation. C) high rates of unemployment will cause steadily declining rates of inflation. D) the Phillips curve illustrates the relationship between the level of inflation rate and the level of the unemployment rate.
Which of the following is generally NOT an example of a zero price?
A. Getting a refill of coffee at a restaurant B. Downloading another MP3 from iTunes C. Watching another movie on Netflix D. Sending another text message