If you are advised that the estimated price elasticity of demand of your product is 2.2, explain how this information will guide your pricing decisions.Ceteris Paribas assume that with the arrest of illegal drug dealers, the police have managed to reduce the amount of cocaine available in the market by fifty percent. Use demand and supply graph(s) together with the concept of price elasticity of demand, explain the impact on the price and quantity of drugs and the total revenue of the remaining suppliers if the:

Demand curve for drugs is elastic

Demand curve for heroin inelastic