where, as usual, denotes the own-price elasticity of demand, S denotes the share of total consumer spending devoted to the good (a fraction), denotes the income elasticity of demand, and comp denotes the compensated demand elasticity. Suppose that for gasoline, = -0.3, S = 0.05, and = 0.2.

Suppose the price of gasoline rises by 10%, but the consumers income does not change.

a. Compute the compensated demand elasticity (comp).

b. Does the quantity demanded of gasoline increase or decrease?

c. By about how much?

Continue to assume that the price of gasoline rises by 10%, but now suppose the government helps the consumer by giving them a cash transfer equal to 10% of last years spending on gasoline.

d. Does the quantity demanded of gasoline increase or decrease?

e. By about how much?

Please show all your work and answer all parts of the question!