Ernest's Income Elasticity of Demand for Natural Gas Is 0

question 47

Multiple Choice

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)-.34
• C).20
• D)-.12
• E)None of the above.

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