If marijuana were legalized, it is likely that there would be an increase in the demand for marijuana. If demand for marijuana is inelastic and the supply of marijuana is perfectly elastic, this will result in
A)higher prices and higher total revenue from marijuana sales.
B)higher prices but lower total revenue from marijuana sales.
C)the same price and higher total revenue from marijuana sales.
D)the same price but lower total revenue from marijuana sales.

Question

Quizplus · Accepted Answer

When demand is inelastic and supply is perfectly elastic, an increase in demand leads to a higher quantity sold at the same price, resulting in higher total revenue.

If Marijuana Were Legalized, It Is Likely That There Would