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War in drugs Consumption of harmful, addictive drugs such as heroin has long been a concern of citizens and governments. Authorities often try to deal

War in drugs

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Consumption of harmful, addictive drugs such as heroin has long been a concern of citizens and governments. Authorities often try to deal with the problem by declaring a war on the drug producers and distributors; significant resources are devoted to stopping the supply of drugs from reaching the streets, and heavy fines and jail sentences are imposed on identified producers and sellers. What is true of the price elasticity of demand for addictive drugs? What effect does the war on drugs have on the market supply of addictive drugs? Given your answer to these first two questions, what are the predictable consequences supply-orientated policies for (a) the quantity of drugs consumed on the streets, and (b) the street price of drugs? Considering these consequences, what would be a better approach to fighting the war on drugs? http://www.economist.comode/13237193 (reference regarding the war on drugs)

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