Suppose Canada Steps Up Efforts to Combat Drug Trafficking And

Multiple Choice

Suppose Canada steps up efforts to combat drug trafficking and, with the aid of the U.S. border patrol, intercepts a significant percentage of cocaine shipments. What will be the impact of this on the market for cocaine in Montréal?

A) The supply of cocaine will increase, causing the price of cocaine to increase.
B) The supply of cocaine will decrease, causing the price of cocaine to increase.
C) The demand for cocaine will increase, causing the price of cocaine to increase.
D) There will be a movement up along the supply curve of cocaine.