If Demand for Drugs Is Inelastic, Then Changes in the Supply

question 46

Multiple Choice

If demand for drugs is inelastic, then changes in the supply curve through interdiction efforts will dramatically

• A)lower equilibrium quantity.
• B)lower equilibrium price.
• C)raise equilibrium price.
• D)raise equilibrium quantity.

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Definitions:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Law Of Supply

The principle that, all else equal, an increase in the price of goods will lead to an increase in the quantity supplied.

Good

An item or service that satisfies human wants and provides utility, which can be transferred or sold.

Sellers

Individuals or entities that offer goods or services in exchange for monetary or other forms of compensation.