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How can we explain the following scenario using​ the​ own-price elasticity​ of​ demand? You only need...

How can we explain the following scenario using​ the​ own-price elasticity​ of​ demand? You only need to specify whether demand is inelastic or elastic and how you know.

Recent efforts by the Food and Drug Administration to reduce the flow of illegal drugs into the United States have actually benefited drug dealers

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Expert Solution

Based on the following state of affairs when demand is relatively elastic the consumption is very low. In the case of unlawful desirable or product like drugs have demand is appeared to be inelastic in greater prices,lead no longer to less usage of these drugs. It increases the ordinary spending of that precise individual.
So the fee elasticity of demand in the following state of affairs is inelastic.

Rahul Sunny answered 2 years ago
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