Reference no: EM133199487 , Length: 1 Pages

Assignment:

Topic/question: An ongoing policy debate concerns whether to legalize the use of drugs such as marijuana and cocaine. Some researchers estimate that legalizing cocaine would cause its price to fall by as much as 95 percent. Proponents of legalization argue that legalizing drug use would lower crime rates by eliminating the main reason for the murderous gang wars that plague many big cities and by reducing the incentive for drug addicts to commit robberies and burglaries. Opponents of legalization argue that lower drug prices would lead more people to use drugs. Discuss how elasticity of demand for cocaine is relevant to the debate over its legalization.

Requirment:

One Page. time new roman, 12, double space. For each discussion question, students must post an initial response to the posted discussion. This response creates a thread on the discussion board, which will be read by other students. Your responses should be clear and in your own words.All postings should be relevant to the discussion topic assigned. You may use examples to illustrate your points. In your secondary postings, short responses like "I agree" or "I disagree" are not enough. You need to back your statements and make a case for alternatives. Very importantly, complete your readings before posting your response to clarify your thoughts. Please check your grammar and edit your response for any typos before you submit them.

Readings:

1. Externalities, Environmental Policy, and Public Goods

By R. Glenn Hubbard

2. Elasticity: The Responsiveness of Demand and Supply

By R. Glenn Hubbard