An antidrug policy that reduces the supply of heroin might
A)increase street crime because the addict's demand for heroin is highly inelastic.
B)reduce street crime because the addict's demand for heroin is highly elastic.
C)reduce street crime because the addict's demand for heroin is highly inelastic.
D)increase street crime because the addict's demand for heroin is highly elastic.

Question

Quizplus · Accepted Answer

An antidrug policy that reduces the supply of heroin is likely to increase street crime if the addict's demand for heroin is highly inelastic. This is because addicts will still want heroin just as much (inelastic demand means their desire doesn't change much with price), but with less supply, the price will go up. This could lead them to commit more crimes to afford their habit.

An Antidrug Policy That Reduces the Supply of Heroin Might