Answer to Question #269430 in Economics for OK MOLEFE

Question

. Draw demand and supply curves and explain what will happen in each scenario. 

 Eskom implements load shedding to reduce the supply of electricity and lighten the load on the system. What will the effect of a reduction in the supply of electricity be on the market for electricity?     

Answer 1

A reduction in the supply of electricity be on the market for electricity will increase the price for electricity and decrease quantity of electricity supplied.