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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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