Use the following diagram to answer the following questions.

-Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

Question

Use the following diagram to answer the following questions.
 
-Refer to Nirvana. Suppose a new drug, nirvana, were made illegal. We would expect:

Quizplus · Accepted Answer

If nirvana were made illegal, we would expect a decrease in the supply of nirvana, shifting the supply curve from S₂ to S₁. This would lead to an increase in the price of nirvana and a decrease in the quantity demanded, which would shift the demand curve from D₁ to D₂. Therefore, we would expect demand to change from D₁ to D₂.

Use the Following Diagram to Answer the Following Questions