Final answer:
Product x is both price elastic in demand and an inferior good. Product z, a close substitute for product x, is likely to have a positive and relatively high cross-price elasticity of demand.
Step-by-step explanation:
Product x is both price elastic in demand and an inferior good. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. When a good is price elastic, a small change in price leads to a proportionately larger change in quantity demanded. An inferior good is a good for which demand decreases as income increases.
Product z is a close substitute for product x, meaning that they are similar goods that can be used interchangeably. When two goods are substitutes, an increase in the price of one good leads to an increase in the quantity demanded of the other. In this case, since product x is price elastic and an inferior good, the cross-price elasticity of demand between product x and its substitute product z is likely to be positive and relatively high.