Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the demand for illegal drugs is extremely price inelastic. In this case, government action to reduce the supply of illegal drugs (through heavy

Suppose that the demand for illegal drugs is extremely price inelastic. In this case, government action to reduce the supply of illegal drugs (through heavy fines, prison terms, DEA interdiction of illegal substances) ____________________, whereas government action to reduce drug demand (public education and awareness programs) ____________________. Group of answer choices lowers prices, shifts drug industry suppliers to organized crime, and lowers equilibrium consumption; raises prices, increases the prevalence of organized crime in the business, and increases consumption. makes illegal drugs unavailable to the population and less "cool" to consume because they are forbidden taboo; simply doesn't work ... just like it didn't work with the anti-smoking campaigns for cigarettes. None of these are correct. raises prices, shifts drug industry suppliers to organized crime, and has little effect on equilibrium consumption; lowers prices, reduces the prevalence of organized crime in the business, and reduces consumption

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Morality Of Economic Behaviour Economics As Ethics

Authors: Vangelis Chiotis

1st Edition

1351168878, 9781351168878

More Books

Students also viewed these Economics questions

Question

Describe the elements of the use case's basic information section.

Answered: 1 week ago