Ernests income elasticity of demand for natural gas is 04, Ask an Expert

Economics

Ernest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for natural gas is -0.3, and he spends 10% of his income on natural gas. What is his substitution price elasticity?

(a) -0.26

(b) -0.34

(d) -0.12

(e) None of the above

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91271718

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