Is Electricity a Giffen Good?
Is Electricity a Giffen Good? Friday October 5, 2007#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)Yesterday I was lamenting on how the public does not understand economics as the media and general public saw no contradiction between lowering power rates and simultaneously lowering power consumption. According to James Cowan of the National Post a 17 year old understands what the media and politicians do not: But the NDP leader was forced to drop his message of the day by Nick Annejohn, a 17-year-old high school student. The Guelph resident said it was a terrible contradiction that the NDP want to both cut electricity rates and promote energy conservation… But Mr. Annejohn said the NDP leaders position defied simple economics…. If electricity is cheaper, companie
