As part of its environmental strategy the Antland government wishes to reduce the annual consumption of coal-
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Question:
As part of its environmental strategy the Antland government wishes to reduce the annual consumption of coal- fired electricity by 5% Antland government economists have analysed data which reveal that the price elasticity of demand for coal - fired electricity is - 0.4. Consequently to achieve its target the Antland government should
A. reduce the price of coal - fired electricity by 12.5%
B. reduce the price of coal - fired electricity by 2%
C. raise the price of coal - fired electricity by 12.5%
D. raise the price of coal - fired electricity by 2%
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Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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