How can elasticity help explain why drug interdiction could reduce the supply of drugs, yet possibly increase drug-related crime?
Answers
Hello there
The demand of drugs is inversely proportion of the supply of drugs. As the supply decreases , the demand of the drugs increase. Thus limiting the amount of drugs in the market does increase crime rate. It inflate the prices of the drugs and gives the suppliers more power to discriminate the price of the drugs. As the prices fluctuate the consumers become more restless and some are addicted. They are willing to pay any price for it.
I hope this answers your question
Thanks
Explanation:
Hello there
The demand of drugs is inversely proportion of the supply of drugs. As the supply decreases , the demand of the drugs increase. Thus limiting the amount of drugs in the market does increase crime rate. It inflate the prices of the drugs and gives the suppliers more power to discriminate the price of the drugs. As the prices fluctuate the consumers become more restless and some are addicted. They are willing to pay any price for it.
I hope this answers your question
Thanks