A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2013 · Q111 Mark
A country's government announces that the penalties imposed on those found guilty of supplying an illegal drug to others are to be increased but that possession of small quantities of the drug for an individual's own use will no longer be illegal. What effect are these changes likely to have on the illegal market price of that drug and on the quantity consumed? [Table with columns: illegal market price, quantity consumed]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Aincrease decrease
Bincrease uncertain
Cuncertain decrease
Duncertain uncertain
✓ Correct answer
B: increase uncertain
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