Making Drugs, Such as Cocaine, Illegal Results in a Higher

question 80

Multiple Choice

Making drugs, such as cocaine, illegal results in a higher price than would be present if the drugs were legal. All else constant, the higher price results in drug users spending

• A) more on drugs if the demand for drugs is inelastic.
• B) more on drugs if the demand for drugs is elastic.
• C) less on drugs if the demand for drugs is inelastic.
• D) more on drugs if the demand for drugs is unitary elastic.

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Definitions:

Time Extension

Granting additional time beyond the original deadline to complete a task or fulfill a contract.

Accounts Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Notes Receivable

Financial assets representing written promises for future receipt of cash.

Accounts Payable

A liability account that tracks money owed by a business to suppliers or creditors for goods and services purchased on credit.