A government introduces a subsidy for product X, so the market price of X falls by 5%. The cross elasticity of demand for product Y, in relation to the price of product X, is +0.4. What will happen to the demand for product Y?
- AIt will decrease by 2%.
- BIt will decrease by 12.5%.
- CIt will increase by 2%.
- DIt will increase by 12.5%.