1-Which of the following are likely to increase the demand for heroin?
a) An increase in heroin users' incomes, assuming heroin is a normal good.
b) Laws making it more difficult to obtain Oxycontin and Vicodin, which are consumption substitutes for heroin.
c) The expectation the heroin is less harmful than previously thought.
d) All of the above will increase the demand for heroin
2-Suppose that Jane Margolis is an addicted heroin user. Ceteris paribus, if the murder of some of the heroin dealers in town causes the price of heroin to rise, we would expect that ___relative to that of a recreational heroin user.
1) Jane's quantity demanded will fall by a relatively large amount
2) Jane's quantity demanded will fall by a relatively small amount
3) Jane's quantity demanded will increase by a relatively large amount
4) Jane's quantity demanded will increase by a relatively small amount