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Unformatted text preview: flatter, more substitutes, and demand becomes more elastic over time. When demand for cocaine is inelastic, the curve will be steep which means the cocaine price will drop while total revenue also drops. No I think the government wants to increase the price of cocaine to reduce the consumers that was stated in the article, a permanent 10 percent rise in cocaine prices would cut the number of users by 8 percent and cut their cocaine use by 4 percent, that has elastic damand. shifted demand - population( shift right )- expectation ( shift right ) shifted supply - technology ( shift right )- price of input (shift right)...
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This note was uploaded on 06/18/2011 for the course ECON 101 taught by Professor Vicek during the Spring '11 term at Parkland.
- Spring '11