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the cross-price elasticity of electricity with respect to the price of natural gas has been estimated as being equal to 0.2. this implies that: a electricity and natural gas are complements. b electricity and natural gas are substitutes. c natural gas and electricity are both normal goods. d electricity and natural gas are both luxury goods. e one of the two goods is inferior while the other is normal, but we need additional information to determine which of them is inferior.

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According to estimates, the cross-price elasticity of electricity with respect to the price of natural gas is equal to 0.2. This indicates a substitution between natural gas and electricity.

What do you understand by cross-price elasticity?

Cross-price elasticity quantifies how responsive a product's demand is to changes in a related product price. Some products on the market frequently have connections to one another. This could imply that the demand for a product can be favorably or negatively impacted by a product's price change.

Cross elasticity of demand enables companies to better comprehend the market. They can then decide on the price to be applied to their products as a result.

To learn more about  cross-price elasticity ,visit: https://brainly.com/question/21497072

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