If a Price Hike of 5 Per Cent Increases the Quantity

Multiple Choice

If a price hike of 5 per cent increases the quantity demanded of another good by 2 per cent, the goods must be _______ and the cross elasticity of demand equals _______.

A) substitutes; 2.5
B) complements; 2.5
C) substitutes; 0.40
D) complements; 0.40