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Lawmakers believe that the social problem associated with doing crack is that users must obtain relatively large sums of money daily and all of the
Lawmakers believe that the social problem associated with doing crack is that users must
obtain relatively large sums of money daily and all of the money spent on crack is obtained
illegally through criminal activities.They decide to combat this crime by increasing efforts to
convict dealers, thereby restricting the supply of crack available.
Analyze this policy assuming that the demand for crack over the relevant range is price
inelastic.
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