It has been estimated that the price elasticity of demand (PED) for residential electricity is -0.25 in the short run and -1.45 in the long run. Which of the following combinations of classifications for residential electricity is correct?
Short-run PED: Elastic; Long-run PED: Inelastic
Short-run PED: Inelastic; Long-run PED: Inelastic
Short-run PED: Inelastic; Long-run PED: Elastic
Short-run PED: Elastic; Long-run PED: Elastic
