What is his substitution price elasticity

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Reference no: EM13732351

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

Reference no: EM13732351

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