You Are a Consultant and Have Been Employed by a Large

You are a consultant and have been employed by a large inner-city hospital called City Hospital to estimate the demand for its services.Your research indicates that the income elasticity of demand for the target market is +0.50;the price elasticity of demand is -0.15;and the cross-price elasticity of demand with respect to the price of services at Rural Hospital,a near-by hospital,is +0.35.Answer the following questions.
The price of services at City Hospital falls by 10%.What happens to the quantity of services demanded by Rural Hospital?

A) Quantity demanded at City Hospital increases by 15.0%
B) Quantity demanded at City Hospital increases by 1.5%
C) Quantity demanded at Rural Hospital rises by 3.5%
D) Quantity demanded at Rural Hospital falls by 5.0%
E) Quantity demanded at City Hospital rises by 5.0%