Suppose that crime is positively related to profits from illegal drug sales and that the demand for

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Suppose that crime is positively related to profits from illegal drug sales and that the demand for drugs is price inelastic. The government’s primary weapon in the war on drugs is the interdiction of illegal drugs flowing into the country from outside its borders. What is the likely effect of this policy on domestic crime rates? Can you suggest an alternative approach to the war on drugs?

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