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If a 10 percent increase in the price of good X results in a 20 percent increase in the quantity of good Y demanded, which of the following is true?
Good X and good Y are complementary goods, and the cross-price elasticity is −0.5. bGood X and good Y are normal goods, and the income elasticity is +2. cGood X and good Y are substitute goods, and the income elasticity is +2. dGood X and good Y are complementary goods, and the cross-price elasticity is −2. eGood X and good Y are substitute goods, and the cross-price elasticity is −2.

JuanB2020-11-05T18:29:29Z

e  Good X and good Y are substitute goods, and the cross-price elasticity is −2

If the price of butter goes up and people buy more margarine you have substitutes.

Only  cross-price elasticity uses data from 2 products.  Income elasticity needs data on change of income.

Oiy2020-11-05T01:31:37Z

Substitute, the cross price elasticity is +2. I‘m so sure, but I don‘t know anything about the income elasticity.

JJ2020-11-04T17:19:56Z

42 is the answer to the Ultimate Question of Life, the Universe, and Everything.