The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs. Suppose that some of these drugs are legalized so that anyone may sell them and use them.
Part 2
Based on positive economic analysis, such decriminalization will lead to
Part 3
A.
a reduction in both quantity demanded of these drugs and in price.
B.
a reduction in price of these drugs and an increase in quantity demanded.
C.
an increase in quantity demanded of these drugs and in price.
D.
a reduction in quantity demanded of these drugs and an increase in price.
B. a reduction in price of these drugs and an increase in quantity demanded.
Based on positive economic analysis, the answer is B. a reduction in price of these drugs and an increase in quantity demanded.
To analyze the consequences of decriminalizing illegal drugs, we can consider the principles of supply and demand in economics.
When drugs are decriminalized and anyone is allowed to sell and use them, it is likely that the supply of drugs would increase. This is because the removal of legal barriers makes it easier for suppliers to enter the market. As a result, we can expect an increase in the quantity of drugs supplied.
On the demand side, the effect of decriminalization is less certain. Some argue that legalization may lead to an increase in drug use, as it removes the legal repercussions associated with drug possession and consumption. On the other hand, others suggest that decriminalization would lead to a decrease in drug use, as it may reduce the allure of illicit activities and criminal elements associated with drug markets.
Based on these considerations, the most plausible outcome, according to positive economic analysis, would be a reduction in price but an uncertain effect on the quantity demanded of these drugs. Therefore, the best answer would be:
B. a reduction in price of these drugs and an increase in quantity demanded.