Cross-elasticity measures substitutability; higher values indicate closer substitutes.

Steps:

• Recall cross-price elasticity of demand: positive values show substitute goods, with magnitude indicating substitution strength.
• Compare values: P and Q have 0.4 (weaker substitutes); P and R have 0.6 (stronger substitutes).
• Identify goods: choices list P, Q, R in sequence; select where P and R are closer substitutes than P and Q.
• Evaluate options: strawberry and raspberry (berries) are closer substitutes than strawberry and cream (flavor vs. base).

Why C is correct:

• Strawberry (P) and raspberry (R) are both berry flavors, yielding higher cross-elasticity (0.6) as closer substitutes per elasticity definition.

Why the others are wrong:

• A: Cream (P) and raspberry (R) are unrelated (dairy vs. fruit), not justifying higher elasticity.
• B: Yogurt (P) and raspberry (R) mismatch base vs. flavor, implying similar substitution to yogurt-strawberry.
• D: Strawberry (P) and raspberry (Q) would have higher elasticity (0.4 assigned wrongly to closer pair).

Final answer: C