Assuming that the demand for iliegal drugs is inelastic, what will happen to the total revenue of the illegal drug industry as a whole if the government arrests drug dealers and confiscates illegal drugs? a. { ["lt will increase", "It will decrease". 'It will stay the same."] } As a result of the answer above. what will happen to the market for illegal drugs? a. { ["The demand for drugs will increase", "The demand for drugs will decrease", \"The supply of drugs will increase", \"The supply of drugs will decrease."] } What is the economic explanation of why drug dealersibuyers tend to resort to illegal means of conict resolution such as violence? a. { [\"Drug dealing is very lucrative\". "Drug dealing seems fashionable", "The marginal cost of committing another crime is higher for them", "The marginal cost of committing another crime is lower for them."] } Illegat drugs tend to be more potent. Why? a. {["The penalty is based on the amount". "Frequent transactions increase the risk of getting caught", "Both buyers and sellers want more potent drugs with less frequent transactions", "All of the above."] } The quality of illegal drugs tends to be worse. Why? a. {["To benet from producing quality products, the sellers need to be well-known for their quatity products". \"Since it is illegal to sell drugs. the sellers don't want to be too well-known for any reasons". "The buyers can't sue or complain to them for bad qualities", "All of the above.\"] } Suppose there is a high demand for a good or service that is \"undesirable" such as drugs or prostitution. What type of people will gain most if it is made illegal? a. {["Those who are good at producing quality drugs or prostitution", "Those who are good at producing cheapest drugs and prostitution". "Those who are good at producing most expensive drugs and prostitution". "Those who are good at violating the laws (e.g.. violence, deception, etc. )"] } What incentives does prohibiting a certain action [e.g.. setling drugs or prostitution) create when the demand for the action is very high? a. {["Encouraging illegal behaviors among those who are good at breaking the laws". "Discouraging illegal behaviors among those who are bad at breaking the laws". "Both of the above", "It won't change anybody's incentives."] }