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An increase in the price of electricity will cause an ______. - Economic Applications

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Question

An increase in the price of electricity will cause an ______.

Options

  • Increase in the demand for solar heaters

  • Decrease the demand for solar heaters

  • Increase in the demand for Geysers

  • None of the above

MCQ
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Solution

An increase in the price of electricity will cause an Increase in the demand for solar heaters.

Explanation:

An increase in the price of electricity makes electric appliances like geysers more expensive to use. As a result, consumers may look for alternative solutions that do not rely on electricity, such as solar heaters. Therefore, the demand for solar heaters, which are substitutes for electric geysers, would likely increase.

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Chapter 1: Elementary Theory of Demand - QUESTIONS [Page 18]

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Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 1 Elementary Theory of Demand
QUESTIONS | Q 27. | Page 18
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