# Let the income elasticity of demand for electricity be 0.10 and the cross-price elasticity of electricity...

###### Question:

1. Let the income elasticity of demand for electricity be 0.10 and the cross-price elasticity of electricity with respect to the price of food be -0.01. What would happen to the demand for electricity if incomes increased 10%?

 Electricity use would increase 1% Electricity use would increase 10% Electricity use would decrease 1% Electricity use would decrease 1%

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