Question

In 1998, the Kenyan government confiscated and burnt 12 tons of elephant ivory in a gesture to persuade the world to halt the ivory trade. They hoped that the gesture would reduce demand for ivory by bringing attention to illegal poaching.

What is the effect on price in the ivory market if the gesture is effective?

Select one:

a. Price increases

b. The effect on price is ambiguous

c. Price remains the same

d. Price decreases

Answer 1

Question-

In 1998, the Kenyan government confiscated and burnt 12 tons of elephant ivory in a gesture to persuade the world to halt the ivory trade. They hoped that the gesture would reduce demand for ivory by bringing attention to illegal poaching.

What is the effect on price in the ivory market if the gesture is effective?

Answer-The correct answer will be Option d, in case this method really worked as stated in the question and demaand for ivory declined as law of demand will operate less demand means less price.