Imagine that the government wages a major war on illicit drugs. Assuming that at the point of initial market equilibrium demand for illicit drugs is ELASTIC, what should happen to the amount of money that the drug dealers are getting from selling the drugs if the government measures are successful and the supply of illicit drugs at the market drops? The amount of money received by the drug dealers goes down The amount of money received by the drug dealers does not change The amount of money received by the drug dealers goes up

Imagine that the government wages a major war on illicit drugs. Assuming that at the point of initial market equilibrium demand for illicit drugs is ELASTIC, what should happen to the amount of money that the drug dealers are getting from selling the drugs if the government measures are successful and the supply of illicit drugs at the market drops? The amount of money received by the drug dealers goes down The amount of money received by the drug dealers does not change The amount of money received by the drug dealers goes up

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 2.5P

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