Which of the Following Statements Is Not Correct Concerning Government

question 197

Multiple Choice

Which of the following statements is not correct concerning government attempts to reduce the flow of illegal drugs into the country? Drug interdiction

• A)raises prices and total revenue in the drug market.
• B)can increase drug-related crime.
• C)shifts the demand curve for drugs to the left.
• D)shifts the supply curve of drugs to the left.

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Definitions:

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product, service, or commodity.

Pounds

A unit of weight commonly used in the United States and the British imperial system, equal to 0.453592 kilograms.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive.

Perfectly Inelastic

Describing a situation where the quantity demanded or supplied does not change regardless of changes in price.