We began looking at the illegal sale of drugs and how the legality effects both Supply & Demand...
We saw that the supply curve rotates up and becomes less elastic; whether selling drugs is legal or illegal marginally the trade-off is the same to the drug dealer. When drugs become illegal there is less sold but there is still a desire for the product. We tend to see more dangerous drugs produced when drugs are illegal. What the government and what we need to think about is opportunity cost, for example, instead of improving technology for everyone we are spending money putting people in jail for drug-related charges. (U.S. spends $33 billion on attempting to stop "drug wars")
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