A "War on Drugs" Is Waged And, as a Result

question 15

Multiple Choice

A "war on drugs" is waged and, as a result, a larger quantity of drugs flowing into Canada is seized and more drug traffickers are arrested. If demand for drugs is inelastic, what effect would one expect this to have on the total expenditure on drugs?

• A) It would be zero.
• B) It would increase.
• C) It would stay constant.
• D) It would decrease.

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