If a 1 Per Cent Increase in the Price of X

Multiple Choice

If a 1 per cent increase in the price of X increases the quantity demanded of Y by 2 per cent, then X and Y are

A) normal goods and the income elasticity of demand of each equals 2.
B) substitutes and the cross elasticity of demand equals 2.
C) substitutes and the cross elasticity of demand equals 1/2.
D) complements and the cross elasticity of demand equals 2.
E) complements and the income elasticity of demand equals 2.