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John is a hardcore heroine addict. Suppose heroine is initially legal. Government then passes a law making the drug illegal. We would expect:
Demand
Refers to the desire and willingness of consumers to purchase goods and services at different prices.
Income Elasticity of Demand
An indicator of the variation in the demand for a product as a result of changes in the income levels of consumers.
Normal Good
A good for which demand increases when consumer income rises, and decreases when consumer income falls.
Inferior Good
A type of good for which demand decreases as the income of consumers increases, and vice versa.
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