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10700038i need help answering B. C. & D.

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Elasticity
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In 2004, Congress allocated over $20 billion to fight illegal drugs. About 60 percent of the funds was directed at
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reducing the supply of drugs through domestic law enforcement and interdiction. Some critics of this approach
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argue that supply-side approaches to reduce the drug supply actually help drug producers.
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1. Demonstrate graphically the effect of supply-side measures on the market for illegal drugs.
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2. Explain how these measures affect drug producers. (Hint: Consider the elasticity of demand).
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3. Demonstrate the effect of demand-side measures such as treatment and prevention on the market illegal.
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4. How does the shift in demand affect the profitability of producers?
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[Note: Make sure you respond to at least another student's post and your response should be on different days of the week
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1. The reduction in the drug supply will cause the price of the drugs to increase. The market price of these illegal
drugs will increase because of the reduction of supply.
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