If the Price of Coke Rises by 5 Percent and the Sales

Multiple Choice

If the price of Coke rises by 5 percent and the sales of Pepsi go up by 10 percent,we can conclude that

A) The sign on the cross-price elasticity will be negative.
B) Both goods are normal goods.
C) Both goods are substitute goods because the cross-price elasticity is +0.5.
D) Both goods are substitute goods because the cross-price elasticity is +2.