MacCoun and Reuter calculate that for which of the following substances is the elasticity index the greatest—that is, there is t

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ikadub [295]

3 years ago

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MacCoun and Reuter calculate that for which of the following substances is the elasticity index the greatest—that is, there is t

he greatest decrease in purchases, given a 1 percent increase in price?

Business

1 answer:

stellarik [79] · Answer 1 · 2022-01-07T01:53:44+03:00

Answer: MARIJUANA

Explanation: MARIJUANA has been known to have different names such as Herb,pot,ganja etc. Many countries of the World have placed Ban or strict regulations to control the use of Marijuana.

MacCoun and Reuter were former staff or RAND,they discovered that a one percent Increase in price will lead to a decrease in demand for Marijuana,which means the demand for Marijuana is elastic. They also proposed that a decrease in consumption should be applied in the regulation instead of Banning the usage of a psychostimulants like Marijuana.