If the government tightens up on drug dealers and raises the costs of dealing illegal drugs, then the drug addicts' dollar expenditures to feed their addiction will tend to

Question

Quizplus · Accepted Answer

Drug addicts' demand for drugs tends to be price-inelastic, meaning their demand does not decrease significantly with an increase in price. Therefore, if the government raises the costs of dealing illegal drugs, the addicts will likely continue to purchase similar amounts, leading to an increase in their dollar expenditures.

If the Government Tightens Up on Drug Dealers and Raises