A Drug Interdiction Program That Successfully Reduces the Supply of Illegal

question 47

Multiple Choice

A drug interdiction program that successfully reduces the supply of illegal drugs in the United States likely will

• A)raise the price,reduce the quantity,decrease total revenues,and decrease crime.
• B)lower the price,increase the quantity,increase total revenues,and increase crime.
• C)raise the price,increase the quantity,decrease total revenues,and increase crime.
• D)raise the price,reduce the quantity,increase total revenues,and increase crime.

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Definitions:

Marginal Utility

The incremental benefit or satisfaction a buyer obtains from the consumption of one more unit of a good or service.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior.

Comparative Advantage

A situation in which a person or country can produce a specific product at a lower opportunity cost than some other person or country; the basis for specialization and trade.

Utility-Maximizing

The economic principle that individuals or firms seek to get the greatest satisfaction or profit from their resource choices.