Questions: Given the market for illegal drugs, when the government is successful in reducing the flow of drugs into the United States, a. demand shifts to the left, supply is unaffected, and price decreases b. supply shifts to the left, demand is unaffected, and price increases c. supply shifts to the right, demand shifts to the left, and price decreases d. demand shifts to the right, supply shifts to the left, and price increases

The answer is b. supply shifts to the left, demand is unaffected, and price increases.

This option suggests that the demand for illegal drugs decreases while the supply remains the same, leading to a decrease in price. However, when the government reduces the flow of drugs, it primarily affects the supply side rather than the demand side.

This is the correct option. When the government successfully reduces the flow of illegal drugs into the United States, it effectively decreases the supply of these drugs. A leftward shift in the supply curve occurs, while demand remains unchanged. As a result, the reduced supply leads to an increase in the price of illegal drugs.

This option is incorrect because it suggests an increase in supply and a decrease in demand, which would lead to a decrease in price. However, the government's actions are aimed at reducing supply, not increasing it.

While this option correctly identifies a leftward shift in supply, it incorrectly suggests that demand increases. The government's actions primarily affect supply, not demand, so demand remains unaffected.