Use the Graph Below to Answer the Following Questions

question 16

Essay

Use the graph below to answer the following questions:
a.If the supply of drugs falls from S₁ to S₂ by what amount will expenditures on drugs change?
b.Given this change in expenditures, would you expect this person to be a casual user or an addict?

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Definitions:

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time or on a continuous basis following each purchase or sale transaction.

General Journal

A primary accounting record used to record all types of transactions and events in chronological order before they are posted to specific accounts.

Internal Control

Approaches and techniques employed by a business to protect the veracity of accounting and financial information, foster answerability, and inhibit dishonesty.

Cash Receipts

Money received by a business from transactions, including sales, loan proceeds, or other cash inflows.