ECON 250D1 Lecture Notes - Lecture 7: Comparative Advantage, Opportunity Cost, Fixed Cost
15 Dec 2019
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Document Summary
Prostitution in nevada is legal now (not in every county) Curious people are more likely to try purchasing the now-legal drug. Living standard will be higher since government makes revenue, boosts up economic activity. Render drugs legal in colombia, gdp would become fivefold. Government goes after the seller, supplier , you get to the source of the issue, reaches more people. Sting operations often make headlines but overall they focus on the supply side. Law enforcement, the risk makes the business less appealing to sellers, most turn towards other businesses or some will make efforts to do it in a hidden way which is costly. Therefore, the cost of operation is higher, less product will be available. Less product available means, reduction in supply, the result is a higher price for the good. That"s why the enforcement is quick to react; Law of demand: the higher the price of a good, the lower the amount it is consume.
