question archive Answer true or false: Because the demand for illegal drugs is inelastic and the supply is elastic, policies that reduce supply in the illegal drug market reduce revenue for drug dealers
Answer true or false: Because the demand for illegal drugs is inelastic and the supply is elastic, policies that reduce supply in the illegal drug market reduce revenue for drug dealers
Subject:EconomicsPrice:2.88 Bought3
Answer true or false:
Because the demand for illegal drugs is inelastic and the supply is elastic, policies that reduce supply in the illegal drug market reduce revenue for drug dealers.
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The answer is false.
- Although a reduction in supply will reduce the quantity of drugs sold by dealers, it will not reduce their revenue since they will take advantage of the inelastic demand to charge higher prices to ensure their revenue is constant.
