Considering the Concept of Cross-Price Elasticity,when Two Goods Are Substitutes

Multiple Choice

Considering the concept of cross-price elasticity,when two goods are substitutes:

A) an increase in the price of one will cause an increase in the quantity demanded of the other.
B) an increase in the price of one will cause a decrease in the quantity demanded of the other.
C) a decrease in the price of one will cause an increase in the quantity demanded of the other.
D) Any of these may be true.