12. A survey shows an increase in drug use by young people. In the ensuing debate, two...
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12. A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed:
—Reduced police efforts have increased the availability of drugs on the street.
—Cutbacks in educational efforts have decreased awareness of the dangers of drug addiction.
a. Use supply-and-demand diagrams to show how each of these hypotheses could lead to an increase in the quantity of drugs consumed.
b. How could information on what has happened to the price of drugs help us to distinguish between these explanations?
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Related Book For
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie
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