What happens to drug dealer revenues when supply is reduced in the illegal drug market, considering inelastic demand and elastic supply?

In the context of the illegal drug market, when supply is reduced and the demand for drugs is inelastic, the behavior of revenues can be understood through the dynamics of supply and demand. Inelastic demand means that consumers are not very responsive to changes in price; they will continue to buy approximately the same quantity of drugs even if the price increases.

When supply decreases, the remaining drugs become more scarce, leading to an increase in price. Because the demand is inelastic, the quantity demanded does not significantly decrease with the rise in price. As a result, drug dealers can charge higher prices for the limited supply, which could suggest that their total revenue might increase.

However, the phrasing of the options in the question highlights an important understanding: With a significant reduction in supply and inelastic demand, while short-term prices might rise leading to higher revenues, it's essential to recognize the overall impacts in various scenarios, such as potential law enforcement actions or shifts in market dynamics.

In this context, it's plausible to argue that some dealers may experience decreased revenue due to increased competition, changes in consumer behavior, or legal constraints. However, the correct interpretation often hinges on the long-term market adjustments beyond initial price increases. Thus, while initial revenues might increase,