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Suppose That Interdiction Efforts Have Stemmed the Flow of Illegal

Question 176

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Suppose that interdiction efforts have stemmed the flow of illegal drugs into the United States.If there is no change in demand, this leads to higher prices for these substances.The result is an increase in crime as users attempt to maintain their now more expensive habits.Economists would call this effect


A) the illusion of rationality.
B) an externality.
C) the cost disease of personal services.
D) inflation.
E) unemployment.

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