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When a Good Is Illegal, the Supply Curve Is Likely

Question 41

Multiple Choice

When a good is illegal, the supply curve is likely to be inelastic because


A) extra costs associated with avoiding capture.
B) the difficulty of expanding operations as price rises because of the increased likelihood of capture.
C) the ease with which sellers can expand operations into new territory when price rises.
D) the ease of finding new buyers without getting caught.

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