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) The change in revenue depends on supply elasticity.

Question

Quizplus · Accepted Answer

The demand for illegal drugs is quite inelastic, meaning that changes in price have little effect on the quantity demanded. Therefore, an increase in price would lead to an increase in seller revenues, as they can continue to sell the same quantity at a higher price.

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