In 2004, Congress allocated over $20 billion to fight illegal drugs. About 60 percent of the funds
Question:
In 2004, Congress allocated over $20 billion to fight illegal drugs. About 60 percent of the funds was directed at reducing the supply of drugs through domestic law enforcement and interdiction. Some critics of this approach argue that supply-side approaches to reduce the drug supply actually help drug producers.
a. Demonstrate graphically the effect of supply-side measures on the market for illegal drugs.
b. Explain how these measures affect drug producers.
c. Demonstrate the effect of demand-side measures such as treatment and prevention on the market for illegal drugs.
d. How does the shift in demand affect the profitability of producers?
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a Graphically supplyside measures typically involve efforts to decrease the quantity of drugs supplied to the market This can be represented by a left...View the full answer
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