If the Cross-Price Elasticity Between Ketchup and Hamburgers Is -2

Multiple Choice

If the cross-price elasticity between ketchup and hamburgers is -2.5, a 2 percent increase in the price of ketchup will lead to a:

A) 5 percent drop in quantity demanded of ketchup.
B) 5 percent drop in quantity demanded of hamburgers.
C) 5 percent increase in quantity demanded of ketchup.
D) 5 percent increase in quantity demanded of hamburgers.