When demand is relatively inelastic, supply-side programs will generate

Question

Quizplus · Accepted Answer

When demand is relatively inelastic, it means that consumers' demand for a product does not change significantly with a change in price. Therefore, supply-side programs, which aim to reduce the availability of drugs and thus increase their price, will not significantly reduce drug use due to the inelastic demand. However, the reduced supply will lead to a large increase in drug prices.

When Demand Is Relatively Inelastic, Supply-Side Programs Will Generate