I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?
some questions ask for your opinion and have no right or wrong answers. For those questions, you get zero points if you do not answer the question, 5 points if you answer the question but do not clearly explain your answer, and 10 points if you answer the question and explain your answer. Other questions require you to provide correct answers and are also graded zero, 5 or 10 points: zero points if you do not answer the question, 5 points if you answer the question incorrectly, and 10 points if you answer the question correctly.
1. (0, 5, or 10) Explain how the elasticity of demand for drugs is important in the debate about legalization of presently illegal drugs?
2. (0, 5, or 10) In recent years, about twenty states have passed so-called medical marijuana laws. Typically, these laws permit individuals to lawfully purchase marijuana from licensed stores, providing they have a letter from their doctor recommending its uses. In a number of these states, the price of medical marijuana is observed to be higher than that of the pot sold illegally just down the street. Use the reasoning in this chapter to explain:
(a) why people would be willing to pay a higher price for the medical marijuana, and
(b) why it might be misleading to compare the observed price of the medical variety with the observed price of the illegal weed.
3. (0, 5, or 10) According to the Surgeon General of the United States, nicotine is the most addictive drug known to humanity, and cigarette smoking kills perhaps 300,000 – 400,000 people per year in the United States. Why then isn’t tobacco illegal in America?
4. (0, 5, or 10) During Prohibition, some speakeasy operators paid bribes to ensure that the police did not raid their establishment while other operators would not.
a) Would you expect the quality of liquor served in such speakeasies to be higher or lower than the liquor served in the establishments that did not pay bribes?
b) Would you expect to find differences (e.g., income levels) between the customers patronizing the two types of speakeasies?