Use the Following Diagram to Answer the Following Questions

question 2

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

• A) supply to change from S₁ to S₂.
• B) demand to change from D₂ to D₁.
• C) supply to change from S₂ to S₁.
• D) None of the above.

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Definitions:

Refugee

A person who has been forced to leave their country in order to escape war, persecution, or natural disaster.

Persecuted

Subjected to harassment, punishment, or harm, often due to political, religious, or ethnic affiliation, without just cause or legal proceedings.

Asylum Seeker

An individual who is seeking international protection from dangers in their home country but whose claim for refugee status has not yet been determined.

Free Market Capitalism

An economic system based on supply and demand with minimal government intervention.