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Suppose that the market for heroin consists of two types of users, addicts and casual users. Casual users only use the drug occasionally, whereas addicts

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Suppose that the market for heroin consists of two types of users, addicts and casual users. Casual users only use the drug occasionally, whereas addicts go to much greater lengths to make sure they have some of it readily available whenever they feel the need to consume it. What would you predict about the demand clasticities for these two types of consumers? Addicts will have more inelastic demand; their level of consumption will be less responsive to price changes. Addicts and casual users are both likely to have very elastic demand. OAddicts and casual users are both likely to have very inelastic demand. O Casual users will have more elastic demand; their level of consumption will be less responsive to price changes

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