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antoniya [11.8K]
3 years ago
14

Assume the demand for crack cocaine is inelastic and that users get the funds to pay for their crack by stealing. Suppose that t

he government increases penalties on suppliers of crack cocaine, which reduces the number of dealers. Using only this information, predict what will happen to the revenues of remaining crack dealers and the amount of crime committed by crack users.
Business
1 answer:
Kobotan [32]3 years ago
4 0

Answer:

Total Revenue of Cocaine will increase.

Explanation:

Elasticity of demand is demand responsiveness to price change.

Price & Total Revenue have relationships as per Elasticity of Demand :

  • Elastic Demand >1 : Change in quantity demanded  >  change in price ; Price & Total Revenue negatively related.
  • Inelastic Demand < 1 : Change in quantity demanded < price change ; Price & Total Revenue positively related

Given : Demand for crack cocaine is inelastic. If government increases penalties on cocaine supply, number of dealers decrease.

Then , the supply of cocaine will fall. Supply Shortage will increase the price. However - because demand is inelastic , total revenue will increase as a result of price rise.

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Answer:

To isolate how a change in price impacts the change in quantity demanded.

Explanation:

In the case of the demand the thing that should be constant is the isolation that means if there is the change in price so the same got an effect in the change in the quantity demanded. So overall we can see that both price and quantity demanded could be impacted in an isolation

Therefore the above should be the answer

Hence, the other options seems wrong

6 0
2 years ago
When a local walmart is open 7 days a​ week, 24 hours a​ day, which form of utility is it providing to​ customers?
Vladimir [108]
Answer: TIME UTILITY

When a local Walmart is open 7 days a week, 24 hours a day, it is providing the customers with time utility. Economic utility includes Form utility, Time utility, Place utility and Possession utility. Time utility refers to the availability of products when the customer needs them. In this utility, the company chooses the hours and days when products and services are available to the customers according to the needs of the customers.
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3 years ago
a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective int
Vitek1552 [10]

Answer:

$7,776,899

Explanation:

Calculation to determine what interest expense would it recognize in its 2021 income statement

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3 years ago
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elixir [45]

Answer:

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Explanation:

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You tell him politely to go and check his timetable/schedule
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