Suppose that, in an attempt to induce citizens to conserve energy, the government enacted regulations requiring that
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Suppose that, in an attempt to induce citizens to conserve energy, the government enacted regulations requiring that all air conditioners be more efficient in their use of electricity. After this regulation was implemented, government officials were then surprised to discover that people used even more electricity than before. Using the concept of price elasticity, explain how this increase might have occurred. (LO4, LO7)
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Principles Of Microeconomics A Streamlined Approach
ISBN: 9781264058785
4th Edition
Authors: Robert H. Frank
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