Suppose the government wants to reduce the illegal importation of exotic animals used as pets and tries to achieve this goal by interrupting the supply of illegally imported exotic animals. If the demand for these animals is highly elastic, this government effort will result in
A) a small reduction in the quantity of exotic pets demanded.
B) a large reduction in the quantity of exotic pets demanded.
C) no change in the quantity of exotic pets demanded.
D) an increase in the quantity of exotic pets demanded.

Question

Quizplus · Accepted Answer

When demand is highly elastic, consumers are very responsive to changes in price or availability. Therefore, if the government interrupts the supply, making these animals harder to obtain or more expensive, there will be a large reduction in the quantity demanded as consumers will easily switch to alternatives or forego the purchase altogether.

Suppose the Government Wants to Reduce the Illegal Importation of Exotic