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Concept of price elasticity

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Reference no: EM132632271

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.

Reference no: EM132632271

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