You have estimated the cross price elasticity between your product (Product Z) and another product, Product Y. The cross-price elasticity is 1.1 (that's a positive number). You have a choice of entering a new market. Which is correct?
a) The two products are substitutes, and entering the new market is a good strategy.
b) The two products are complements, and entering the new market is a good strategy.
c) The cross-price elasticity result is inconclusive for market entry decisions.
d) The two products are unrelated, and entering the new market is a good strategy.