If a new drug, crash, were made illegal there would likely be a large decrease in supply because:

Question

Quizplus · Accepted Answer

When a drug is made illegal, there is a higher risk for suppliers to produce and distribute the drug due to lack of government-enforced property rights. The risk of being caught and punished increases, which decreases the supply of the drug. Option A is incorrect because the nonprice cost of the drug remains the same regardless of its legality. Option B is incorrect because smugglers and cartels can be affected by the same risks and costs associated with illegal drug production and distribution. Option D is irrelevant and not a significant factor in determining drug supply.

If a New Drug, Crash, Were Made Illegal There Would