When the price of Good X increases by 10 percent, the quantity demanded of Good Y increases by 25 percent. The cross elasticity between these two goods is
A. 0.4 and they are complements.
B. 2.5 and they are complements.
C. 0.4 and they are substitutes.
D. 2.5 and they are substitutes.
Answer: D
Economics
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