OperatesHeavyMachinery
Bluelighter
- Joined
- Feb 13, 2002
- Messages
- 838
A key element that is not touched upon is the creation of the demand. The demand for the drug does not materialize from thin-air, it is dependent upon the supply. Once the supply has been steady enough for addictions to develop, the elasticity of demand can fade.
Basically, the argument for inelasticity is only sustained for a drug that already has a very high number of addicts.
If different measures were taken when oxycontin was introduced, for instance, is it possible that today's black-market demand for the drug would be lower? Or higher, for that matter?
Also, a crucial element is noted early but then back-burnered, that being that the inelasticity is short-term.
If the prices go through the roof and stay that way, the drug will be prohibitively expensive, perhaps not in the immediate short-run, but very soon thereafter.
For instance, if the price of dank went up to $1000/quarter oz., how many of those would you buy before examining your alternatives (hash, schwag, mids, etc)?
But I'm not ripping this apart, it's an excellent piece with solid economic theory backing it. In fact, I'd advise editing out some of the "biting yourselves in the ass" ranting, simply because it's otherwise an objective and serious piece that does not come off as the writings of a pissed-off drug advocate.
Basically, the argument for inelasticity is only sustained for a drug that already has a very high number of addicts.
If different measures were taken when oxycontin was introduced, for instance, is it possible that today's black-market demand for the drug would be lower? Or higher, for that matter?
Also, a crucial element is noted early but then back-burnered, that being that the inelasticity is short-term.
If the prices go through the roof and stay that way, the drug will be prohibitively expensive, perhaps not in the immediate short-run, but very soon thereafter.
For instance, if the price of dank went up to $1000/quarter oz., how many of those would you buy before examining your alternatives (hash, schwag, mids, etc)?
But I'm not ripping this apart, it's an excellent piece with solid economic theory backing it. In fact, I'd advise editing out some of the "biting yourselves in the ass" ranting, simply because it's otherwise an objective and serious piece that does not come off as the writings of a pissed-off drug advocate.