If the Cross Price Elasticity Between Goods a and B

Multiple Choice

If the cross price elasticity between Goods A and B equals 0.7, then a reduction in the price of Good B will:

A) ​increase the demand for Good A and increase Good A's price as a result.
B) ​increase the demand for Good A and decrease Good A's price as a result.
C) ​decrease the demand for Good A and increase Good A's price as a result.
D) ​decrease the demand for Good A and decrease Good A's price as a result.