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January 1950 - Volume 18 Issue 1 Page 45 - 55


p.45


The Theory of Demand Applied to the French Gas Industry

Michael J. Verhulst

Abstract

Data for the French gas industry is studied under the assumption that the demandfor gas by a consumer is a function of the price of gas and of the disposable income of the consumer. The demand equation is shown to be identified within themodel defined by the demand equation, the equation of production, and the equilibrium equations. Elasticities of demand with respect to price and disposable income are obtained and confidence regions are calculated and interpreted.

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