Suppose that you own a clothing store. You expect food prices to increase 20 percent due to the COVID-19 pandemic. If the cross-price elasticity of demand between food and clothing is 0.18, what will be the resulting impact on sales from your clothing store?

Multiple Choice

• Sales will increase by 3.6 percent.
• Sales will decrease by 3.6 percent.
• Sales will increase by 0.9 percent.
• Sales will decrease by 0.9 percent.