Under which of the following conditions would the interdictionof illegal drugs r
ID: 1251509 • Letter: U
Question
Under which of the following conditions would the interdictionof illegal drugs result in a decrease in the quantity of drugs soldand in deecrese in tatal spending on illegal drugs by drugusers. a. The interdiction as the effect of shifting the demand curvefor illegal drugs to the right. b. the price lasticity of demand for illegal drugs is1.3. c. the price elasticity of supply for illegal drugs is0.8 d. as a result of the interdiction, the price of illegal drugsincreases by 20 percent and the quantity of illegal drugs solddecreases by 16 percent. Under which of the following conditions would the interdictionof illegal drugs result in a decrease in the quantity of drugs soldand in deecrese in tatal spending on illegal drugs by drugusers. a. The interdiction as the effect of shifting the demand curvefor illegal drugs to the right. b. the price lasticity of demand for illegal drugs is1.3. c. the price elasticity of supply for illegal drugs is0.8 d. as a result of the interdiction, the price of illegal drugsincreases by 20 percent and the quantity of illegal drugs solddecreases by 16 percent.Explanation / Answer
Answer B.the price elasticity of demand for illegal drugs is1.3 An "elastic" good is one whose price elasticity of demand has amagnitude greater than one.
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