Figure: Demand 2 in the Figure Where S₁ Is

question 21

Multiple Choice

Figure: Demand 2 In the figure where S₁ is the supply of drugs with no prohibition and S₂ is the supply of drugs with prohibition, the area that represents total revenue with drug prohibition is ______, and the area that represents total revenue with no prohibition is ______.

• A) A + C + D; B + D
• B) C + D; A + C
• C) A + C; C + D
• D) B + D; A + C

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Definitions:

Election Outcome

The result of a voting process in which a person or proposal is selected among a set of candidates or options.

Deregulation

The removal of most or even all of the government regulation and laws designed to supervise an industry. Sometimes undertaken to combat regulatory capture.

Economists

Experts or professionals who study, develop, and apply theories and concepts in economics to analyze how societies utilize scarce resources.

Monopoly

A market condition where a single firm has exclusive control over a product or service, eliminating competition.