Consider the scenario represented in Figure 11.2, with S₁ representing the black-market supply of ivory (which well assume remains constant). Let the shift from S₁ to S₂ represent an influx of legal ivory due to a partial lifting of the ivory ban. Suppose that the relaxation of the ban increases ivory demand. Draw the largest possible increase in demand that would not result in an increase in the quantity of black-market sales relative to the initial level, Q_A.

Figure 11.2

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Price P P Qc QA QB S D S2 Quantity of Ivory