Asked by Magnus Biancoma835 on Apr 27, 2024
Verified
The demand for cocaine among addicts is relatively elastic.
Cocaine
A powerful stimulant drug derived from the leaves of the coca plant, commonly used recreationally and noted for its potent effects and potential for addiction.
Elastic
A term describing the sensitivity of demand or supply to changes in price or other factors.
Addicts
Individuals who have developed a dependency on substances or behaviors that significantly impair their health or social functioning.
- Absorb the concept of price elasticity of demand and its implications for revenue levels.
Verified Answer
JM
Jasmyne McGeeMay 03, 2024
Final Answer :
False
Explanation :
The demand for cocaine among addicts is relatively inelastic because addicts prioritize purchasing the drug over other goods, even when prices increase, indicating a strong dependency that diminishes sensitivity to price changes.
Learning Objectives
- Absorb the concept of price elasticity of demand and its implications for revenue levels.