If law enforcement agencies prohibit the use of drugs such as heroin, cocaine and crack and the demand for drugs is inelastic, it is possible that:
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 increase
D)the price of drugs will rise and drug-related crime will fall

Question

Quizplus · Accepted Answer

When law enforcement prohibits the use of drugs, the supply of drugs decreases, making it difficult for suppliers to meet the same level of demand. As a result, the price of drugs increases. However, since the demand for drugs is inelastic, meaning that people are willing to pay almost any price for drugs, the increased price does not decrease the demand for drugs. As a result, drug-related crime also increases, as people turn to crime in order to finance their addiction.

If Law Enforcement Agencies Prohibit the Use of Drugs Such