Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold AND in a decrease in total spending on illegal drugs by drug users? A. The price elasticity of supply for illegal drugs is 0.8. В. 9. The price elasticity of demand for illegal drugs is 1.3. С. The interdiction has the effect of shifting the demand curve for illegal drugs to the right. D. As a result of the interdiction, the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 16 percent. E. A and C, only

Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold AND in a decrease in total spending on illegal drugs by drug users? A. The price elasticity of supply for illegal drugs is 0.8. В. 9. The price elasticity of demand for illegal drugs is 1.3. С. The interdiction has the effect of shifting the demand curve for illegal drugs to the right. D. As a result of the interdiction, the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 16 percent. E. A and C, only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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