If the Cross-Price Elasticity of Demand Is -3, Then

question 169

Multiple Choice

If the cross-price elasticity of demand is -3, then

• A)the goods are substitutes
• B)one good is price inelastic
• C)one good is an inferior good
• D)one good is a luxury good
• E)the goods are complements

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Definitions:

Morphine Derivatives

Compounds chemically related to morphine, often used for their analgesic (pain-relieving) properties.

Amphetamines

Drugs that stimulate neural activity, causing speeded-up body functions and associated energy and mood changes.

Barbiturates

Drugs that depress the activity of the central nervous system, reducing anxiety but impairing memory and judgment.

Depressant

A substance that reduces arousal or stimulation, affecting the central nervous system.