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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
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