If the demand for currently illegal recreational drugs is highly inelastic and these drugs became legal, prices would fall. An economist would expect which of the following to happen in response to the lower price?
A) Total spending on drugs would rise.
B) No one would follow the laws of economics anymore.
C) Many more people would become drug users.
D) Not many more people would become drug users.

Question

Quizplus · Accepted Answer

When demand is inelastic, quantity demanded does not change significantly with a change in price. Therefore, even if prices fall, not many more people would become drug users.

If the Demand for Currently Illegal Recreational Drugs Is Highly