Which of the following statements is not correct concerning government attempts to reduce the flow of illegal drugs into the country? Drug interdiction a. raises prices and total revenue in the drug market. b. can increase drug related crime c. shifts the demand curve for drugs to the left. d. shifts the supply curve of drugs to the left.
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Which of the following statements is not correct concerning government attempts to reduce the flow of illegal drugs into the country? Drug interdiction
a. raises prices and total revenue in the drug market.
b. can increase drug related crime
c. shifts the demand curve for drugs to the left.
d. shifts the supply curve of drugs to the left.
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- Drug interdiction, which reduces the supply of drugs, may decrease drug-related crime because the demand for drugs is inelastic. O True O FalseConsider the demand and supply for illicit drugs. Assume you have been appointed by the government to recommend on an optimal policy to tackle the problem. You are told that the price elasticity of demand (or own-price elasticity) is <1 (i.e., inelastic) and that the price elasticity of supply is >1 (i.e., elastic). Would you recommend the government intervene on the demand side or the supply side. Explain your answer. What sorts of policies would you recommend?Hi there, can you please help me understand the below question with diagrams if possible? Specifically the varying effects on supply and demand with reference to the policies below! Critically assess an argument to legalize drugs using a simple supply and demand framework. Take as your benchmark a policy of full legalization (no penalties for supply or demand). Now consider the equilibrium between supply and demand. Critique a policy of (a) full legalization (b) penalizing use only (c) penalizing supply only and (d) penalizing both use and supply Thankyou!
- Graph the market for an illegal drug and explain the shape of each curve. List at least four ways the US govt. fights the “war on drugs” and identify each as either a supply-side or a demand-side strategy. On a new graph, illustrate a large decrease in supply and explain the result in terms of market P and Q. On a third graph, illustrate a small decrease in demand and explain the new result. Based on Parts 3 and 4, which strategies—supply or demand—are more effective in decreasing quantities of illegal drugs that are exchanged in these markets?Graph the market for an illegal drug and explain the shape of each curve. List at least four ways the US govt. fights the “war on drugs” and identify each as either a supply-side or a demand-side strategy. On a new graph, illustrate a large decrease in supply and explain the result in terms of market P and Q. On a third graph, illustrate a small decrease in demand and explain the new result. Based on Parts 3 and 4, which strategies—supply or demand—are more effective in decreasing quantities of illegal drugs that are exchanged in these markets? If you were the head of the US Congressional Finance Committee, how would you allocate funds among these strategies and why?What determines the price of a drug (be detailed and cover all bases) on the demand side vs the supply side?
- Picture a scenario in which the fashion industry is suffering from monopolistic price gouging and a dwindling demand (due to the existence of sweatshops and environmentally unfriendly business practices). A hypothetical situation such as this is likely to cause high unemployment in the fashion industry. What could the government do to correct this market failure? Including diagrams where/if appropriate)If the governments efforts to reduce demand are effective, what happens to price and usage of marijuana? And what would happen to the price and usage if the government efforts to reduce supply are effective? State and explain an economic tool government can use to address the increase in usage after legalization of drugs.Please no written by hand solution In 1972 the U.S. Food and Drug Administration (FDA) began requiring all aspirin manufacturers to package aspirin in bottles with child-resistant protective caps, to make it much harder for children to open the bottles and thus reduce the number of young children who died from overdosing on aspirin. (Children apparently thought the aspirin was candy.) Rather than decreasing, the number of young children who died from overdosing on aspirin actually increased. Use the Economic Way of Thinking to carefully and completely explain why requiring this safety device led to an increase in the number of children overdosing on aspirin.
- 1. A U.S. patent for the drug that most effectively treats HIV prevents other drug companies from producing a comparable substitute for patients. a. What is the effect of patent protection on the demand for a drug? How does the shape of the demand curve differ before and after a patent has expired? Support your explanation with a graph. b.Demand curves respond to preferences, income, and costs of substitute and complements. Discuss how these factors determine a country’s demand for HIV treatments. How might the effects of the patent protection differ across countries?Explain how the opioid epidemic could be ia supply problem caused by the oversupply of prescription pain meds, drug traffickers and illegal drug manufacturers. Draw a graph.Consider a market transaction that you have undertaken (or considering) as a consumer which was notable because it is particularly recent, large, or unusual. Analyze this transaction from a microeconomic standpoint: a. Explain how & why (from the perspective of the supplier), the good or service in question was created, and the reason you entered the market to secure this product or service (demand side). b. Discuss in general terms the factors on the demand and supply side that will have influenced the price you paid for this product. Show what might happen to the price of the product if one of these factors changes. c. Assess whether the product in question is likely to be price elastic or inelastic at the current market price (demand). Following this assessment describe the likely impact on the supplying company’srevenue following an increase in the price they charge (ceteris paribus) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take…