A government wants to reduce electricity consumption by 15%. The price elasticity of demand for electricity is -5. The government must the price of electricity by .

Increase; 3%

Explanation:

Price elasticity of demand measures the sensitivity of demand to a change in prices. When this measure is negative, it means that an increase in price, will result in a decrease in quantity demanded.

Formula is:

Price elasticity of demand = Change in Quantity demanded / Change in price

If the government wants to reduce consumption by 15%, the price increase should be:

-5 = -15% / p

-5p = -15%

p = -15%/-5

p = 3%

levels of production can be increased by technology while holding labor and capital constant, because increased technology makes the production process more efficient. subsequently, the lras curve is almost a vertical line, that can shift to the right, with an increase in technology.

the relationship between the lras curve and the ppc is that both can make the economy could grow. the ppc achieves that when it shifts outward because of more resources or technological advances while the lras curve shifts if more resources are developed or if there are technological advances.

the lras curve is a vertical line at an output level that represents the number of goods and services a nation can produce over a sustained period using all of its productive resources as efficiently as possible with all of the current technology available to it.

the production possibilities frontier (ppf) is a graphical device that is used for economic analysis of production decisions because the ppf measures the maximum possible combinations of two goods that an economy is capable of producing with its currently available resources and technology.

answer; i believe the correct answer is (general);