The price elasticity of demand for heroin is 27 suppose

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The price elasticity of demand for heroin is .27. Suppose that half of the existing heroin users support their habits with property crime. Further, the loss from property crimes committed by heroin users equals half of the total spending (total revenue 'TR') on the drug. Suppose the government pursues an aggressive anit drug campaign that successfully reduces the suppy of heroin, increasing the price by 20%. Fill in the blanks in the following table.

Price Qty of Heroin TR Property Crime

$10 1,000 $10,000 $5,000

$12

Reference no: EM13379196

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