If enforcement is aimed at sellers of an illegal good,the
A)price and quantity bought decrease.
B)price and quantity bought increase.
C)price rises and quantity bought decreases.
D)price falls and quantity bought increases.
E)price change is uncertain and quantity bought decreases.

Question

Quizplus · Accepted Answer

Enforcement aimed at sellers of an illegal good would increase the cost of production and supply for the sellers, leading to an increase in price. As a result, the quantity bought would decrease as consumers would be less willing to pay the higher price. Therefore, the correct choice is C, where price rises and quantity bought decreases.

If Enforcement Is Aimed at Sellers of an Illegal Good,the