If the purchase and sale of a currently illegal drug were decriminalized in Texas, economist would predict... a. The price would increase b. The price would decrease, quantity would decrease c. The price would remain the same d. Not enough info, need to know how large shifts were in relation to each other

If the purchase and sale of a currently illegal drug were decriminalized in Texas, economist would predict... a. The price would increase b. The price would decrease, quantity would decrease c. The price would remain the same d. Not enough info, need to know how large shifts were in relation to each other

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4TY: The following table summarizes information about the market for principles of economics textbooks:...

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1. Assume that if drugs (like marijuana, cocaine and heroin) were legalized, the supply curve would shift down and to the right because the business of drugs would become less risky and less expensive. a. Would you expect the demand curve to shift if drugs were legalized? Why or why not? b. Given the supply shift and your answer to (a), what would happen to the drug price and quantity consumed if legalized? Use a graph to illustrate your answer. c. Although it is difficult to empirically test, many people believe that thedemand for drugs is price inelastic for addicted users and price elastic foryoung or occasional, recreational users. Show graphically what wouldhappen to the total revenue of drug sellers whose customers are addicted and of sellers whose customers are casual users. Assume that drug sellers can be separated by their customer type. Also assume that the demand curve does not shift when drugs are legalized.
With the outbreak of COVID-19, many people in Hong Kong choose cooking athome instead of dining out to reduce the chance of contacting Coronavirus. At thesame time, it is observed that many restaurants have closed down.Given that many restaurants cut their menu prices in this period, explain, with theaid of a supply-and-demand diagram, how the above changes affect the market fordining out meals in restaurants.
can you help me with thia qustion Doug William, the owner of a corner store, estimates that the supply and demand for a specialized energy drinkcould be described by the following equations D : q=−25 p+345 , S : q=50 p−330,where p represents the price in dollars per case (each case contains 12 bottles), and q represents the number ofcases sold each week (a) Determine the market equilibrium price and quantity.
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