If the Percentage Change in Quantity Demanded of Good B

question 131

Multiple Choice

If the percentage change in quantity demanded of Good B is 2 percent and the percentage change in the price of Good A is -10 percent,what is the cross-price elasticity of demand?

• A) 0.20
• B) -5
• C) 1
• D) 5
• E) -0.20

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Definitions:

Illicit Drug

A substance whose production, sale, or use is prohibited by law.

Marijuana

Marijuana, also known as cannabis, is a psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Amphetamines

A class of stimulant drugs that affect the central nervous system, commonly used to treat ADHD and narcolepsy, but also prone to abuse.

Toxic Psychosis

Hallucinations, delirium, and paranoia caused by repeated high doses of amphetamines.