Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 5 - Elasticity: A Measure of Responsiveness - Exercises - 5.2 Using Price Elasticity - Page 121: 2.5

Answer

demand is inelastic

Work Step by Step

Because the demand for drugs is inelastic, the increase in price means the drug users must find more money to purchase the same quantity of drugs. This extra money may come from burglaries or robberies.
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