Suppose the demand curve for good X is of the form: q_{x}=1000 + I – 50p_{x} 20p_{y}. Suppose, p_{x}=$10, p_{y}=$10, and income (I)=$100.
1) 
Cross price elasticity of demand between X and Y = 1/2, and X and Y are complements. 

2) 
Cross price elasticity of demand between X and Y = 1/2, and X and Y are complements. 

3) 
Cross price elasticity of demand between X and Y = 1/2, and X and Y are substitutes. 

4) 
Cross price elasticity of demand between X and Y = 3/2, and X and Y are complements. 
A is correct.
The goods are complements because as the price of good Y increases the demand for good x reduces. It works as follows. When price of Y rises, the demand for y falls. And since these two goods x and y are complements or consumed together, the demand for x also falls.
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