Since the demand for illegal drugs is quite inelastic, an increase in the price of illegal drugs:
A) increases seller revenues.
B) decreases seller revenues.
C) does not affect seller revenues.
D) put an end to the use of illegal drugs.

Question

Quizplus · Accepted Answer

The demand for illegal drugs is quite inelastic, which means that changes in price do not have a significant impact on the quantity demanded by consumers. Therefore, an increase in price will lead to an increase in seller revenues as the sellers are able to charge more without suffering a significant decrease in the quantity demanded.

Since the Demand for Illegal Drugs Is Quite Inelastic, an Increase