Suppose That a 7 Percent Increase in the Price of Normal

Multiple Choice

Suppose that a 7 percent increase in the price of normal good Y causes a 4 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is

A) negative, and therefore these goods are substitutes.
B) positive, and therefore these goods are substitutes.
C) negative, and therefore these goods are complements.
D) positive, and therefore these goods are complements.