The economic argument for legalizing drugs O is morally bankrupt. O is based on the assumption that demand is relatively price inelastic. O shows that economists are all libertarians at heart. O takes into consideration all the externalities associated with drug use. O is really politically motivated.

The economic argument for legalizing drugs O is morally bankrupt. O is based on the assumption that demand is relatively price inelastic. O shows that economists are all libertarians at heart. O takes into consideration all the externalities associated with drug use. O is really politically motivated.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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Only typed answer and don't use chat gpt The economic argument for legalizing drugs is morally bankrupt. is based on the assumption that demand is relatively price inelastic. shows that economists are all libertarians at heart. takes into consideration all the externalities associated with drug use. is really politically motivated.
If the governments efforts to reduce demand are effective, what happens to price and usage of marijuana? And what would happen to the price and usage if the government efforts to reduce supply are effective? State and explain an economic tool government can use to address the increase in usage after legalization of drugs.
4. What do you think would be the effect on the equilibrium price and quantity of marijuana as a result of its consumption being legalized? Give reasons for your answer.
For each of the cases below, describe the type of entry barrier that appears to be most relevant. Which of the following describes the type of entry barrier faced for a patented blood pressure medication? OA. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. B. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through limited access to key natural resources. c. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through price cutting Which of the following describes the type of entry barrier faced for legal services? A. There is a created entry barrier for legal services because entry into the market has…
For each of the cases below, describe the type of entry barrier that appears to be most relevant. Which of the following describes the type of entry barrier faced for a patented blood pressure medication? OA. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. B. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through limited access to key natural resources. c. There is a created entry barrier for a patented blood pressure medication because entry into the market has been limited through government action. OD. There is a natural entry barrier for a patented blood pressure medication because entry into the market has been limited through price cutting. Which of the following describes the type of entry barrier faced for legal services? A. There is a created entry barrier for legal services because entry into the market…
Suppose tuition fees for a university increase from £3,000 to £9,000. Afterthe increase, enrolment drops by 5%.a) Calculate the price elasticity of demand for education at this university.Explain.b) Do tuition revenues at this university increase or decrease following thetuition fee change? How is this related to the price elasticity of demand foreducation at this university? Explain.c) Focusing on welfare (private and social costs and benefits), give the maineconomic argument(s) as to whether the government should subsidizehigher education or not, and if so by how much. Provide sufficient detail for your argument(s).d) In some countries higher education is provided free of charge to allstudents. Does this make such higher education a public good? Explain.e) Explain why setting up a cartel and maintaining collusion may be difficultin general.f) Explain how a maximum tuition fee of £9000 imposed by the government may facilitate collusion between universities.
Pece $100 $50 10 Orth Refer to the figure above. The price of a physician visit is $100. Individual A can only afford 5 doctor's visits. The society determines that A is under consuming doctor's visits and wants A to increase the visits to 10. What is the least amount of money the society subsidize A? The society subsidizes A less than $50 per visit. The society must subsidize A $50 per visit. The society must subsidize A $100 per visit. The society must subsidize A $75 per visit.
QUESTION 8 The demand for cigarettes has seen some decrease ever since vaping was introduced as a less harmful alternative to smoking cigarettes. Select the item from the list provided to make the following statements true. ✓ The main factor detailed in the scenario causing the decrease in demand for cigarettes is a/an - 1. upward movement along the demand curve change in price of a complement good increase in population 4. downward movement along the demand curve 2. Suppose the Australian government taxes the production of 3. cigarettes which led to an increase in prices of cigarettes and a decrease in quantity demanded for cigarettes in the market. Graphically this can be depicted as a/an of cigarettes. ✓ Now assume that prices of e-cigarettes (vape) decreased, and cigarette smokers switched to the cheaper e-cigarettes. This can best be explained by a 5. change in income of consumer 6. change in price of a substitute 7. change in expectation of future price 8. decrease in population…
How do technologies affect changes in both supply and demand? Cite an example. Do you agree that government intervention in the market can overcome market failure? Explain your answer and cite examples. PRICE ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm. POINT PRICE QUANTITY DEMANDED FOR CHICKEN A 100 10 B 90 20 INCOME ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm. POINT INCOME QUANTITY DEMANDED FOR CHICKEN IN KILO A 20,000 8 B 25,000 10 CROSS ELASTICITY: Given the quantity demanded and prices for commodities below, compute and determine if the goods are either substitutes or complements. GOOD QD1 QD2 P1 P2 COFFEE 4 7 8 6 TEA 5 3 7 9 GOOD QD1 QD2 P1 P2 JUICE 8 9 10 11 SOFTDRINK 6 7 9 12
1. What sort of product is alcohol in economic terms if the government wants torestrict consumption of it?2. Analyze the social costs of alcohol consumption.3. Analyze the factors that would determine the impact of a price increase on theconsumption of alcohol4. Is introducing a minimum price a better way of reducing consumption than trying tochange peoples’ attitudes?
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” Why do you think Adam Smith preferred to impose a tax on luxury goods? Why do you think Adam Smith preferred a tax on ‘objects of almost universal consumption’? Note that ‘Smith’s proposal to tax sugar was not aimed at improving health’ Requirement: Demonstrate a precise understanding of Adam Smith’s meaning and intent, with the appropriate link to relevant economic concepts.
In the area around a local university, a number of food vendors gather each lunchtime tosell food to university students who are tired of dorm food. The university and the townhave no license fees that apply to food vendors, preferring to let the market dictate howmany and which vendors show up.Many different cuisines are represented on the street corner, including a cart sponsoredby ABC selling X and Y . ABC sells a plate of either X or for Rs.5. The food is made inthe morning at nearby restaurant, when the kitchen is otherwise unoccupied. His crew ofthree, each of whom earns Rs.15 per hour, takes 2 hours to make the 100 meals requiredby ABC. In creating these meals, they use ingredients equal to Rs.100. ABC hires anotherworker to load her cart with food and sell it during the lunch hours. That worker costsRs.10 per hour and typically sells out the entire cart of 100 meals in 2 hours. The cart isrented for Rs. 100 per 5-day week.What market structure does this business most resemble?…