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igor_vitrenko [27]
3 years ago
10

Suppose a city that operates local electric and natural gas companies wants to raise revenues by increasing its rates for electr

icity and natural gas. The price rise will increase city revenues if the elasticity of demand for electricity and natural gas is:
Business
1 answer:
leva [86]3 years ago
7 0

Answer: Inelastic

Explanation:

Price elasticity could be defined as when the desire for a product changes as it's price changes. When people's desires changes or they are no longer interested as the price for the commodity goes up. Inelastic demand is defined as when the buyers demand does not change or is not influenced as the price of the commodity goes up, rather the demand decreases than increasing. The price rise will increase city revenues if the elasticity of demand for electricity and natural gas is elastic.

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