Question

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 and use them. Now consider the two claims that price will fall and quantity demanded will increase.
a) Based on positive economic analysis, are these claims sound? Give reasons to support your answer.

Answer 1

These claims are definitely sound due to the fact that whenever any demanded thing is sold privately or illegally, the price of that particular thing is always higher.

Hence, when the drugs are legalized , this means that anyone can purchase them from several location, hence, this will reduce the price of the drug as it will now be common and will increase the quantity demanded of the product as well because the people who once were not able to afford that drug due to being expensive, can now easily afford it.

Good Luck

Hope this clear things up.