Third (3rd) Mid-Term Extra Bonus Credit Question......

In Chapter 5, ("Elasticity And It's Applications), Figure 9 (page 105), highlights how Supply, Demand & Elasticity can be used to address various social issues such as drug interdiction and drug education. Again, refer to Chapter 5, Figure 9, panels A & B, page 105.

Question: If you were an advisor to POTUS (President), what policies would you recommend to reduce the illegal use of drugs from a short and long run perspective based on your Econ knowledge of Elasticity, Supply, Demand and effects on Price & Quantity ?

Answer rating: 100% (QA)

As an advisor to the President my recommendations to reduce the illegal use of drugs would be rooted in economic principles of elasticity supply and d... View the full answer