QUESTION 22 When a good is illegal the demand curve is likel

QUESTION 22 When a good is illegal, the demand curve is likely to be inelastic because extra costs associated with avoiding capture. O the difficulty the buyer faces in getting their dealer to sell them more. tage of users. O price dramatically impacts usage

Solution

22 The correct option is option b, because of the difficulty in locating the dealers the price change does not bring any change in quantity demanded.

24 ) The correct option is A because this will shift the supply curve upward thus price will decrease and quantity will fall.

26) Tthe correct option is c, because criminal activities such as hoarding will affect the supply side because this will reduce supply thus increasing price for customers as a result their demand will become less elastic.