If demand for drugs is inelastic, then changes in the supply curve through interdiction efforts will dramatically

Question

Quizplus · Accepted Answer

When the demand for drugs is inelastic, changes in the supply curve will not have a significant impact on the equilibrium quantity because the demand remains unchanged. Therefore, efforts to interdict the supply of drugs will result in an increase in equilibrium price because the supply curve shifts leftward, causing a reduction in the quantity supplied, and ultimately raising the price to achieve equilibrium.

If Demand for Drugs Is Inelastic, Then Changes in the Supply