All of the following statements about legalizing and taxing drugs are true except
A)legalizing and taxing drugs would eliminate the black market in drugs.
B)the quantity of a drug bought could be decreased if the drug was legalized and taxed.
C)a sufficiently high tax could be imposed to decrease supply,raise the price,and achieve the same decrease in the quantity bought as with a prohibition of drugs.
D)an extremely high tax rate would be needed to cut the quantity of drugs bought to the level prevailing with a prohibition.
E)tax revenue can be used to make law enforcement more effective.

Question

Quizplus · Accepted Answer

Legalizing and taxing drugs would not necessarily eliminate the black market in drugs. A black market could still exist to avoid taxes or sell to those who are underage or otherwise restricted from purchasing legally.

All of the Following Statements About Legalizing and Taxing Drugs