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A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street Cutbacks in education have decreased awareness of the dangers of drug addiction What could you use to distinguish between these two explanations? Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by cutbacks in education Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by reduced police efforts. Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by cutbacks in education Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by reduced police efforts The change in equilibrium price is ambiguous

A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street Cutbacks in education have decreased awareness of the dangers of drug addiction What could you use to distinguish between these two explanations? Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by cutbacks in education Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by reduced police efforts. Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by cutbacks in education Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by reduced police efforts The change in equilibrium price is ambiguous

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street Cutbacks in education have decreased awareness of the dangers of drug addiction What could you use to distinguish between these two explanations? Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by cutbacks in education Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by reduced police efforts. Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by cutbacks in education Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by reduced police efforts The change in equilibrium price is ambiguous
Transcribed Image Text:A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street Cutbacks in education have decreased awareness of the dangers of drug addiction What could you use to distinguish between these two explanations? Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by cutbacks in education Whether the equilibrium quantity of drugs increased or decreased. If the quantity increased, then it was driven by reduced police efforts. Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by cutbacks in education Whether the equilibrium price of drugs increased or decreased. If the price increased, then it was driven by reduced police efforts The change in equilibrium price is ambiguous
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