If the demand for illegal drugs is determined by them being illegal and the implications of illegal drugs for the government’s drug enforcement policy.
Explanation of Solution
In the case of illegal drugs, when people buy drugs regardless of price, then the demand is inelastic for drugs that can be illegal or legal. But if people do not buy drugs when the price increases, then the demand is elastic which changes with the price change.
Implications of illegal drugs for the government’s drug enforcement policy:
When people get addicted to drugs, then it becomes a necessity; therefore, without considering it deadly consequence of illegal drug use arises the need to control the
Allowing
People usually start using drugs at a young age and a large portion of their income is spent on the expenses of alcohol or tobacco. This makes the demand elastic at the initial stage but the demand gets fixed at a certain minimum quantity, which impacts the government’s drug enforcement policy.
When a government prohibits the usage of a drug in the state, then this kind of drug is included in the category of illegal drug.
Chapter 9R Solutions
Krugman's Economics For The Ap® Course
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