What is the most likely effect of a government reducing the supply of illegal drugs?
A)The total amount spent on illegal drugs will decrease.
B)The total amount spent on illegal drugs will increase.
C)The quantity of illegal drugs consumed will remain unchanged.
D)The demand for illegal drugs will fall.
E)The demand for illegal drugs will increase.

Question

Quizplus · Accepted Answer

When a government reduces the supply of illegal drugs, the scarcity typically drives up the price. Assuming demand remains relatively inelastic (i.e., consumers continue to buy drugs despite price increases due to addiction or strong preference), the total amount spent on illegal drugs is likely to increase.

What Is the Most Likely Effect of a Government Reducing