Those who support legalizing the sale and use of cocaine and heroin argue that:
A) demand is highly inelastic, so legalization would reduce expenditures on drugs and reduce street crime.
B) demand is highly elastic because there are so many substitutes for these drugs.
C) addict demand is inelastic, but the demand by occasional users is elastic.
D) addict demand is elastic, but the demand by occasional users is inelastic.

Question

Quizplus · Accepted Answer

Demand for cocaine and heroin is highly inelastic, meaning that a change in price will not significantly affect the quantity demanded. Legalization would reduce the price of these drugs, which would lead to a decrease in expenditures on drugs and a reduction in street crime.

Those Who Support Legalizing the Sale and Use of Cocaine