1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The basic distinction between a primary and a secondary market is a. proceeds from sales in the primary market go to the current
zavuch27 [327]

Answer:

c. Only new securities are sold in the primary market.

Explanation:

  • Primary markets is where securities are sold for the first time. Secondary market is a place (physical o virtual place) where securities are renegociated.
  • As an example, think about a company which is increasing its capitalization and wants to emit new stocks: it would do it in the primary market.
  • On the other hand, if some of the members of the company wantsto buy more stocks from that company, unless the company is emiting new stocks, he or she would have to buy the stocks in the secondary market.
3 0
3 years ago
A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______
Elena L [17]

Answer:

$1,700

Explanation:

Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.

It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.

3 0
3 years ago
The largest proportion of federal revenues comes from
NemiM [27]
The largest proportion of federal revenues comes from C. Personal income taxes.
6 0
3 years ago
Social Security Multiple Choice Is a Defined Benefit Pension Plan Is offered by local governments Is an optional Pension Plan Is
worty [1.4K]

Answer:

In simple words, Retired, incapacity, as well as survivor payments are all part of the Social Security program. In its nature, it is very much like a defined benefit pension plan.

Most employees contribute Social Security levies on their income to apply for many of these claims; claimants' advantages are dependent on the wages earner's payments. Aside from that, benefits like Supplemental Security Income (SSI) are dependent on use.

4 0
2 years ago
How can someone make money legitimately from their phone?​
zloy xaker [14]

Answer:

by selling items on ebay

Explanation:

6 0
2 years ago
Read 2 more answers
Other questions:
  • Leonard, the manager of a manufacturing firm, wants the organization to perform better. He expects his employees to think more l
    15·1 answer
  • Nolan Dry Cleaners has determined the following about its​ costs: Total variable expenses are $40,000​, total fixed expenses are
    15·1 answer
  • When an F5 (category 5) tornado hit a town in southern Missouri, the people that lived there needed the basics: food, water, and
    10·1 answer
  • If the Canadian dollar to U.S. dollar exchange rate is 1.21 and the British pound to U.S. dollar exchange rate is 0.68​, what mu
    13·1 answer
  • Universal Containers has two sales groups. Each group has its own unique sales process. What is the best way to ensure that sale
    15·1 answer
  • Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.0
    8·2 answers
  • Suppose the demand for peaches decreases. what will happen to producer surplus in the market for peaches?
    12·1 answer
  • ​Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with On
    8·1 answer
  • Wage/price controls allow us to
    9·1 answer
  • What best describes the role of government in a free enterprise system? ​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!