When the RCMP arrested several large marijuana dealers, economists predicted that the street price of marijuana would ________ because ________.
A) rise; there are fewer sellers in the market
B) fall; this is an illegal activity
C) fall; the economy will go into a recession
D) rise; there are more buyers in the market
E) fall; selling drugs isn't a market-based activity

Question

Quizplus · Accepted Answer

When there are fewer sellers in a market, the supply decreases, which leads to an increase in price. Therefore, the street price of marijuana would be expected to rise in this scenario.

When the RCMP Arrested Several Large Marijuana Dealers, Economists Predicted