Proposal To Focus Additional

Consider a proposal to focus additional enforcement efforts on suppliers, by increasing Coast Guard patrols to catch a higher fraction of people importing drugs into the country. What effect will this have on the price of drugs?Answer: If more coastal guards would be employed to catch the importers of illegal drugs then it would ultimately decrease the supply of drugs in the market and would be unable to fulfill the demand for illegal drugs. Since supply is less and demand is more it would ultimately increase the price of drugs in the market. The suppliers would be in the position to charge more prices from the customers. Since the consumers are addicted of it they would be ready to pay whatever is being charged from them. Suppliers may also enforce price differentiation depending upon the elasticity of demand.Consider a proposal to focus additional enforcement efforts on buyers, by hiring more undercover police to sell drugs and arrest the people who buy from them. What will be the effect on the actual cash price of drugs? On the effective price faced by buyers?Answer: Since this a precautionary measure on the part of the consumers, it would ultimately