Explain the perspective that tougher enforcement of drug laws for cocaine or other drug laws may actually increase the crime rate. Use the concepts of demand, supply, and elasticity in your explanation
Please provide the best answer for the statement.
Tougher enforcement of drug laws reduces the supply of cocaine and other illegal drugs, thus driving up the street price. The demand for cocaine and other drugs, however, appears to be highly inelastic. The increased price will increase total revenues and profits for sellers, but at the same time it will increase total spending by drug users. To support this increased spending, drug users are likely to commit more crimes. Thus, the increased enforcement of drug laws may have the secondary effect of increasing money-producing crimes such as robbery, burglary, shoplifting, and fraud.
You might also like to view...
If a small country were to levy a tariff on its imports then this would
A) decrease the country's economic welfare. B) have no effect on that country's economic welfare. C) increase the country's economic welfare. D) change the terms of trade. E) raise prices on its exports in other countries.
Political considerations are unimportant to an understanding of tax policy
a. True b. False
Suppose for some firm that average total cost is minimized at Q1 units of output. For a monopolistically competitive firm in long-run equilibrium, Q1
a. is also the level of output at which marginal cost equals average total cost. b. exceeds the level of output at which there is a point of tangency between the demand curve and the average total cost curve. c. exceeds the level of output at which marginal revenue equals marginal cost. d. All of the above are correct.
A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called a(n)
A. Excise tax. B. Property tax. C. Income tax. D. None of the choices are correct.