If the Cross-Price Elasticity of Demand Is −3,then _____

question 110

Multiple Choice

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

• A)the goods are substitutes.
• B)the goods are unrelated.
• C)one of the two goods is an inferior good.
• D)one of the two goods is a luxury.
• E)the goods are complements.

---

Definitions:

Marijuana

A psychoactive drug derived from the Cannabis plant, used primarily for medical or recreational purposes.

THC

Tetrahydrocannabinol, the psychoactive compound found in marijuana that is responsible for its mind-altering effects.

Hallucinogens

A class of psychoactive substances that induce perceptual and sensory distortions or hallucinations, often used in recreational settings but sometimes also in therapeutic contexts.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception, mood, and a variety of cognitive processes.