Suppose the Cross- Elasticity of Demand for Two Goods, Domestic

Multiple Choice

Suppose the cross- elasticity of demand for two goods, domestic cheese and imported cheese, is positive. If the price of imported cheese falls, then quantity demanded will

A) rise for domestic cheese and fall for imported cheese.
B) rise for both domestic and imported cheese.
C) fall for domestic cheese and rise for imported cheese.
D) fall for both domestic and imported cheese.
E) not enough information to answer this question.