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Answer: c) Demand for electricity is highly elastic
The **EXCEPT** choice is **C** because electricity demand is generally **highly inelastic**, not highly elastic. The other statements are consistent with why electricity is unusual among commodities: it is difficult to store, instantaneous supply is constrained, and demand is often seasonal.
Author: Manit Arora
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Question 187.1. According to McDonald, electricity is unique among commodities for each of the following three reasons EXCEPT:
A
a) More difficult to store than most consumption commodities (mostly non-storable)
B
b) At any point in time, maximum supply of electricity is fixed (can produce less but not more)
C
c) Demand for electricity is highly elastic
D
d) Demand for electricity is highly seasonal
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