If you catch one hundred cocaine shipments, and the street price does not increase, then have you made any real impact on the supply of product to the consumer?
If you catch one hundred cocaine shipments, and the street
If in the market the demand for the product is inelastic, meaning that for any increase in the price there is less increase in the quantity demanded of that product then increase or decrease in the price of the product ultimately depends upon the supply of the product if the supply of the product falls then there will be an increase in the price for that product because now the supply will become less than the demand whereas if supply of the product increases it will lead to a fall in the price of that product as supply will become more than quantity demanded.
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