Drugs, Street Crime and Econom

McConnell, Brue. “Drugs and Street Crime.” Economics: Principles, Problems, and Policies 15 May. 2003

“Supply and Demand," Microsoft Encarta Encyclopedia 99. N.P.: n.p., 1999. CD-ROM.

To sell drugs is illegal, dangerous but very profitable these days. People say that this business is short run money making but as we all know in this short period you can make a lot of money. Everybody knows why drugs are expensive, mainly because it is illegal to produce them and to sell them. Actually you are mainly paying for the risk of the producer being caught and not for the cost of producing drugs. Politicians are all the time trying to forbid coming narcotics in the country but it will not stop people using it. It will make drugs more expensive and people will have to make more money

Economically, present situation has a demand and supply on the market of for example cocaine and heroin. To understand it, we must know what demand and supply means. Supply and Demand are basic factors which determine price (“Supply and Demand”). According to the theory of supply and demand, the market prices of commodities and services are determined by the relationship of supply to demand. Point where supply and demand meets each other is called market equilibrium. The three components of microeconomics demand, supply, and market equilibrium provide a foundation for almost any branch of economics. If we look at a market with cocaine and heroin and we see demand and supply, we get market equilibrium; this is when there is no new situation on the market. But if the drug control on boarders will increase, fewer drugs will get in the country, the market of cocaine and heroine will change. The demand will stay the same but the supply curve will move to left. Quantum will decrease and the price will rise up. Change of the supply curve will also change the market equilibrium.

The best example to see how drugs can be profitable is to see a movie with a drug cartel boss who lives in a palace and there are cars that we can only dream of parked in his garage. These people are making a lot of money based on other peoples` weakness to reject using narcotics. Problem with drug addicts in the country is making a bad name to politicians and that is why they want to get rid off them with every cost. Most of them have old ideas; they think if they someh

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