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Crackdowns on illegal drugs would result in a decrease in the quantity of drugs sold AND in a decrease in total spending on illegal drugs
Crackdowns on illegal drugs would result in a decrease in the quantity of drugs sold AND in a decrease in total spending on illegal drugs by drug addicts if:
a.The price elasticity of demand for illegal drugs is 0.7
b.As a result of the interdiction, the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 30 percent
c.The price elasticity of supply for illegal drugs is 0.9
d.The interdiction has the effect of shifting the demand curve for illegal drugs to th
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