Question

When a government fines and/or imprisons persons convicted of using illegal drugs, the government is attempting to decrease the illegal drug trade by shifting the ________ curve for illegal drugs ________.

Answer 1

When a government punishes and/or imprisons those who are found guilty of using illicit drugs, it is trying to stop the illegal drug trade by moving the demand curve for illegal substances to the left.

The government wants people to abstain from using illegal narcotics, thus in order to stop individuals from doing so, it is punishing those who do. And for this reason, individuals won't use those illegal drugs or won't buy them as much, which will naturally move to the "demand curve" to the left.

The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the amount demanded over a specific time period. A common representation will have the price on the left-hand vertical axis and the amount needed on the right-hand horizontal axis.

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