If law enforcement agencies reduce the number of illegal drugs entering the country and the demand for drugs is inelastic:
A) the price of drugs will fall and drug-related crime will fall
B) the price of drugs will fall and drug-related crime will increase
C) the price of drugs will rise and drug-related crime will fall
D) the price of drugs will rise and drug-related crime will increase

Question

Quizplus · Accepted Answer

If law enforcement agencies reduce the number of illegal drugs entering the country and the demand for drugs is inelastic, the supply of drugs will decrease, which will cause the price of drugs to rise. As the price increases, some people who cannot afford the higher price will stop consuming drugs, hence the demand will decrease. This reduction in demand will reduce drug-related crime.

If Law Enforcement Agencies Reduce the Number of Illegal Drugs