Suppose the Cross-Price Elasticity of Demand Between Raspberry Jam and Strawberry

Multiple Choice

Suppose the cross-price elasticity of demand between raspberry jam and strawberry jam is 7.5.The interpretation of this result is that

A) a 10% increase in the price of strawberry jam leads to a 7.5% increase in quantity demanded of raspberry jam.
B) a 10% increase in the price of strawberry jam leads to a 0.75% increase in quantity demanded of raspberry jam.
C) a 10% increase in the price of strawberry jam leads to a 75% increase in quantity demanded of raspberry jam.
D) a 10% increase in the price of strawberry jam leads to a 7.5% decrease in quantity demanded of raspberry jam.
E) a 10% increase in the price of strawberry jam leads to a 75% decrease in quantity demanded of raspberry jam.