Question

3 queastion:

1.the economics of prohibition depends upon the microeconomic theories of behavior

2.price elasticity of demand with regard to addictive consumption

3.standard economic theory, discuss the monopoly and other models that explain the supply of illicit drugs

Answer 1

1) Economics of Prohibition

The initial economic effects of Prohibition were largely negative.The closing of breweries, distilleries and saloons led to the elimination of thousands of jobs. In turn thousands more jobs were eliminated for barrel makers, waiters, and other related trades. This depends upon microeconomics as microeconomics deals with what choices people make, what factors influence their choices and how their decisions affect the goods market.

2)Price elasticity with regard to addictive consumption.

Drugs for example marijuana prices have fallen toward the end of the 1990 while the best evidence, available from several sources. It seems that price and availability influence the decisions of children and young adults. The higher the price, the smaller the number of people who use marijuana.

3) Economic theory for the supply of illicit drugs.

The economic patterns of illicit drugs follow the same principles of any illegal good or service with a reasonable real demand. There is nothing special about the production or distribution of popular illegal drugs: heroin, LSD, cocaine, ecstasy, amphetamines, meth and marijuana. This puts illegal drugs in the same category as undocumented immigrant labor, prostitution, the market for body parts (such as kidneys,) firearms inside gun-free jurisdictions or even alcohol during prohibition. Put together, these goods and services constitute the black market.