Econ writing assignment問題急需!!! (20分!!!)

Benji

2008-06-28 7:08 pm

1. explain the elasticities of the suppy and demand curves for the market for
illegal drugs.

2. if the government seeking out and attacking those who are producing,
transporting, or selling the drugs. expalin the results on the market
equilibrium.

3. if the goal is to reduce the amount of drugs in the market by the largest
amount (in other words, reduing equilibrium quantity by the most possible),
then what should the government do instead? explain how this result is clearly better.

回答 (1)

Nap

2008-06-28 8:11 pm

✔ 最佳答案

1. Demand of illegal drugs tends to be inelastic since consumer of those drugs get addicted. They need them just like a necessity.
Supply is comparatively elastic as compared with demand because producing illegal drugs are quite labor intensive which means they could easily increase their supply as long as the profit margin is there.

2. Supply of the drugs will shift to left which cause EQ little while EP increase a lot.

3. The most efficient way should be reduce demand by education or treatment for those addicted person. Since the demand is more inelastic than supply, reducing demand implies greatly reduce EQ and some in EP.

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