1. Explain how the elasticity of demand for drugs (whether it is elastic or inelastic) is important in the debate about legalization of presently illegal drugs? The graphs below are there to help you with your answer.

$. P Inelastic Demand Elastic Demand In the case of the inclassic demand for drugs, the In the case of an classic demand for drugs, same increase in supply resulting from legalization legalization would shift the supply curve forward would result in a smaller increase in drug usage. and result in a larger increase in drug usage