The demand for heroin addicts among users is known to be almost perfectly inelastic.This means that if the price of heroin increases
A)total revenue for drug dealers will rise.
B)total revenue for drug dealers will stay the same.
C)total revenue for drug dealers will fall.

Question

Quizplus · Accepted Answer

When the demand for a product is inelastic, a change in price will not have a significant impact on the quantity demanded. In the case of heroin addicts, they are willing to pay almost any price for the drug, as they are addicted and cannot easily quit. Thus, if the price of heroin increases, the demand will remain relatively constant, and drug dealers will be able to increase their prices without losing customers. This will lead to a rise in total revenue for drug dealers.

The Demand for Heroin Addicts Among Users Is Known to Be