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Critically assess an argument to legalize drugs using a simple supply and demand framework - Suppose a new recreational drug is discovered. The government decides

Critically assess an argument to legalize drugs using a simple supply and demand framework - Suppose a new recreational drug is discovered. The government decides to not tax supply, but to tax demand according to the consumption externality for drug use. Use a standard welfare analysis and propose a Pigovian tax. Secondly, argue against the whole methodology of using standard welfare analysis for goods like drugs. What sort of ethical system would discourage welfare analysis in this case?

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