Assume that the cross-price elasticity of demand forCornflakeswith respect to the price ofRice Crispiesis equal to -1. What will happen if the price ofCornflakesdecreases by 10%?

Select one:

a.

Demand forRice Crispieswill increase by 10%.

b.

Demand forCornflakeswill increase by 10%.

c.

Demand forRice Crispieswill fall by 10%.

d.Demand forRice Crispieswill be unchanged

e.

Demand forCornflakeswill decrease by 10%.