Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).
-According to the Application,what should we observe before we can undoubtedly attribute the lower drug prices to a decrease in demand?

Question

Quizplus · Accepted Answer

A decrease in demand would lead to a decrease in both price and quantity. Therefore, if drug prices are decreasing but quantity is increasing (as in the case of a surplus), it cannot be solely attributed to a decrease in demand. A shortage (B) would suggest an increase in demand, while an increase in equilibrium quantity (A) may be due to increased supply or decreased demand. A decrease in equilibrium quantity (C) is the most direct and clear indicator of a decrease in demand.

Recall the Application About the Decrease in Price of Illegal