Suppose that the market for illegal drugs is perfectly competitive. Suppose further that domestic crime rates are
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Suppose that the market for illegal drugs is perfectly competitive.
Suppose further that domestic crime rates are positively related to the value of illegal drug sales and that the demand for drugs is price inelastic. The government’s primary weapon in the war on drugs is to interdict then flow into the country from outside its borders.What is the likely effect of interdiction on domestic crime rates? Do you support such a policy? What alternative approach to the war on drugs would you recommend?
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