The USgovernment's Focus on Supply Reduction Efforts in Its "War on on Drugs

question 141

Essay

The U.S.government's focus on supply reduction efforts in its "war on drugs" has been relatively unsuccessful at addressing illegal drug use.Some economists believe that a successful anti-drug program must concentrate on reducing demand; for example, through drug education and voluntary treatment programs for addicts.
a.What will happen to the equilibrium price, quantity, and total revenue from cocaine sales if the government succeeds in its efforts to reduce demand? What is likely to happen to the incentive to sell cocaine?
b.Suppose the government continues to concentrate its efforts on supply reduction and is able to reduce the supply of cocaine.As a result of the reduction in supply the price of cocaine increases by 25 percent.If the price elasticity of demand is -0.5, what is likely to happen to the incentive to sell cocaine?
c.Based on your answers, explain why one approach might be preferred over the other.

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Definitions:

State-Level Presidential Elections

The process by which individual U.S. states conduct their own elections to contribute to the overall outcome of the presidential election through the Electoral College system.

Progressive Reformers

Individuals and groups advocating for social, political, and economic reforms to address injustices in the early 20th century.

Federalists

Supporters of the ratification of the U.S. Constitution, favoring a strong national government.

Democrats

Refers to the Democratic Party, one of the two major contemporary political parties in the United States, known for its liberal and progressive stances on various issues including social welfare, environmental protection, and civil rights.