In the short run, the price elasticity of the demand and supply of electricity can be very low.
a. How might revenue for the electricity industry change, if one power plant were shut down for maintenance, reducing supply?
b. If one power company owned many power plants, would it have a short-term incentive to keep all of its plants running, or could it have a short-term incentive to shut down a power plant now and then?
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In the short run, the price elasticity of the demand and supply of electricity can be very low.
a....
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