When a Good Is Illegal, the Supply Curve Is Likely

question 66

Multiple Choice

When a good is illegal, the supply curve is likely to be inelastic because

• A)extra costs associated with avoiding capture.
• B)the difficulty of expanding operations as price rises because of the increased likelihood of capture.
• C)the ease with which sellers can expand operations into new territory when price rises.
• D)the ease of finding new buyers without getting caught.