Under Which of the Following Conditions Would the Interdiction of Illegal

question 42

Multiple Choice

Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold and in a decrease in total spending on illegal drugs by drug users?

• A)The interdiction has the effect of shifting the demand curve for illegal drugs to the right.
• B)The price elasticity of demand for illegal drugs is 1.3.
• C)The price elasticity of supply for illegal drugs is 0.8.
• D)As a result of the interdiction,the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 16 percent.

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