Question: The quantity demanded of good A increasesincreases by 2 2 percent when the price of good B rises by 5 5 percent and other things

The quantity demanded of good A
increasesincreases
by
22
percent when the price of good B rises by
55
percent and other things remaining the same.
Calculate the cross elasticity of demand. Are goods A and B complements or substitutes? How does the demand for good A change?
Question content area bottom
Part 1
The cross elasticity of demand of good A with respect to good B is
enter your response here.
>>> Answer to 1 decimal place. Do not use a fraction.
Part 2
The cross elasticity of demand tells us that good A and good B are______ and as the price of good B rises, the demand for good A______.
A.
complementscomplements;
increasesincreases
B.
inferior goodsinferiorgoods;
decreasesdecreases
C.
complementscomplements;
decreasesdecreases
D.
substitutessubstitutes;
increases

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