John is a hardcore heroine addict. Suppose heroine is initially legal. Government then passes a law making the drug illegal. We would expect:

Question

Quizplus · Accepted Answer

When a drug is made illegal, its price in the black market increases due to the risk associated with producing and selling it. As a result, the quantity demanded of the drug reduces, but the extent of the decrease may vary. In John's case, we can expect that the quantity demanded of heroine may fall by a relatively small amount. However, it is unlikely that the law alone will make John kick his habit or engage in less criminal activity.

John Is a Hardcore Heroine Addict