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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Definitions:

Anecdotal Evidence

Information derived from personal accounts, stories, or testimonials rather than from systematic scientific evaluations, often subject to bias.

Experimenter Bias

A process where the scientists performing the research influence the results, either intentionally or unintentionally, to achieve a certain outcome.

Double-Blind

An experimental procedure in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Self-Report Methods

Refers to techniques where individuals provide data about themselves, often through questionnaires or interviews.