The production of methamphetamine (meth) is a social problem in the Midwest. Iow
ID: 1226904 • Letter: T
Question
The production of methamphetamine (meth) is a social problem in the Midwest. Iowa is considering two potential programs: Operation Meth bust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs. Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth. Assuming that each program were successful, which of the following statements is correct? Both Operation Meth bust and Say No would reduce the equilibrium quantity and increase the equilibrium price of meth. Both Operation Meth bust and Say No would reduce the equilibrium quantity of meth; Operation Meth bust would increase the equilibrium price, whereas Say No would reduce the equilibrium price of meth. Both Operation Meth bust and Say No would reduce the equilibrium price of meth; Operation Meth bust would reduce the equilibrium quantity, whereas Say No would increase the equilibrium quantity of meth. Both Operation Meth bust and Say No would increase the equilibrium quantity and reduce the equilibrium price of meth.Explanation / Answer
A. Both will reduce equilibrium quantity an dincrease pruce of meth. This is because when it will be available in low quantities, producer can easily charge high price from the consumer.
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