This website uses cookies to ensure you have the best experience. Learn more

The Underground Market For Drugs Essay

1971 words - 8 pages

The underground market for drugs is like any other market economy. Like all other markets, it is governed by the forces of supply and demand. When speaking about these concepts, it is valuable to have a concrete definition to return to. Supply, as defined in “Essentials of Economics” is “The ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period, ceteris paribus.” (Schiller, 50). Similarly, demand is “The ability and willingness to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus.” (Schiller, 50).
Regrettably, the demand for drugs is considered to be relatively inelastic (at least in the short term). As a result, an increase in prices, generally speaking, may not lead to a substantial decrease in the quantity of drugs demanded. In essence, addicts will buy no matter the price. Factors that affect demand may include income level, the time frame (i.e. spring break or New Year’s Eve), and the availability of other substitute goods.
In illegal drugs, as with most other goods, there are substitute goods available. When the price is high, consumers who are either unwilling or unable to pay, turn to other goods that are less expensive. Consumers will also shift to other goods if the product becomes too difficult to obtain. One of the most common substitutes for illegal drugs happens to be prescription drugs. Oxycodone, or Oxycotin is the main prescription drug used as a substitute for heroin since it is a powerful opioid, both are a derivative of poppies. At the same time, alcohol and cigarettes both function as substitutes, both are habit forming and addictive. There has been some thought to the idea that restrictive or prohibitive policies increase the consumption of substitute goods, such as alcohol, which then generate their own negative externalities. Externalities are costs that third parties bear. The negative effect of alcohol is widely acknowledged, reduced inhibitions leading to drunk driving and abuse as well as other negative externalities.
Supply of drugs is relatively elastic and an escalation in price will usually cause a large increase in the quantity of narcotics supplied. Several of the factors that affect supply include; government restrictions, seasonal and weather conditions, and the price and availability of factors of production.
With attention to supply and demand, government has two principal courses of action. Harm reduction (through education and information) or fixed, restrictive policies such as custom controls, and tough or extreme sentencing such as Thailand? Employs. Or, yet more policies imposing on freedoms such as no-knock police raids, incarceration, and confiscation of private property. Police has been known to resort to a form of setup and blackmail to gain informants, as neither users, nor dealers consider themselves victims.
All things considered, the key difference between the two approaches is that...

Find Another Essay On The Underground Market for Drugs

The Tests for Market Efficiency Essay

2337 words - 9 pages arrival of new information. It is a presumption that market is efficient if the price of stock change averagely without any bias in response to the new information in the market without waiting for any other information in the market. This means that the current prices of stocks and securities truly reflect the impact of any new information. So there is no reason to believe that the price is too low or two high. Prices of securities are adjusted so

The Market for Alcoholiic Beverages Essay

1438 words - 6 pages ECON 1101 - The Market for Alcoholic Beverages Andrew Fontaine (2148 8547) An important purpose of this study has been to search for differences in economic factors, prices and incomes to explain the differences in the consumption of alcoholic beverages. The effects of the prices and incomes on consumption are measured by elasticity’s, which include price elasticity. Price elasticity of demand is a measure used in economics to show the

The Development of Novel Drugs for Chronic Myeloid Leukemia

1002 words - 5 pages combination of drugs in order to succeed in healing. Chronic Myeloid Leukaemia is a rare cancer that affects white blood cells [5] and extends to its stem cells. In the bone marrow, where the production of myeloid and lymphoid lineage occurs, white blood cells increase in number, leading to less available space for proliferation and maturation of others cell types. In the light of this, immature cells fall into the bloodstream enhancing the

The Use of Carbon Nanotubes for Delivery of Anticancer Drugs

689 words - 3 pages Most of the existing anticancer drugs are very potent small molecules; their efficacy is constrained by their systemic toxicity, narrow therapeutic window, low drug loading, size control, scale up, cost of formulation but also as a result of drug resistance and limited cellular entry. In the last few years, carbon nanotubes have been projected as a promising carrier for many drugs including anticancer agents because of the high surface area and

The Market for the School Uniform Business

1348 words - 5 pages The Market for the School Uniform Business Uniform Co. has operated in this district for the past ten years established itself only within the blue-collar market. Uniform Co.'s uniform producing machines are operating at fifty percent capacity and we have a surplus of employees. To achieve optimum profits the company must ether layoff part of its staff or expand its business into other markets. Uniform Co. has a good reputation of treating

The Hidden Job Market: Strategies For Survival

974 words - 4 pages The Hidden Job Market: Strategies for Survival As many new and potential graduates begin to prepare themselves for the job market, two important concepts, networking and mentoring, will help them to strategize. Networking and mentoring are the keys to success! They have become the forefront of the job search process. According to Jobhunt.org, "between 75% and 85% of all jobs are not posted or advertised on the web or in newspapers". These

Hyperlinks and Human Links: Reading Geoff Ryman’s "253 or tube theatre: a novel for the Internet about London Underground in seven cars and a crash" online

1666 words - 7 pages page PAGE \* MERGEFORMAT 1 Hyperlinks and Human Links: Reading Geoff Ryman's 253 or tube theatre: a novel for the Internet about London Underground in seven cars and a crash online.Geoff Ryman's internet novel, 253, is a series of 'Godlike' insights into contemporary urban human existence and carries dark undertones of death. The face that it is written "in seven cars and a crash" is an apt description that places the events of the novel

The Market for Ice Cream in America Creamy Opportunities for a Chilly Market

3306 words - 13 pages 6.5% since 2003. The market was dominated by the industrial sector, which accounted for 90.1% of sales in 2003. In 2003, the United States remained the largest individual market in the world accounting for over 25% of global ice cream sales. 2Based on our findings, the recommended strategy for new ice cream businesses entering the industry is to focus on extending the market to minority populations that are growing within the United States.Table of

how drugs in the music industry is making music popular for the wrong reasons

2324 words - 9 pages the last two or three years, drugs, especially heroin, have risen in use dramatically. Kurt Cobain was the most high-profile drug-related rock star since the 1970's and was still battling heroin addiction when he committed suicide in 1994. Along with him, his wife Courtney Love made it fashionable to be a 'junkie'. In the last year, Stone Temple Pilot's singer Scott Weiland and Depeche Mode singer David Gahan, among others, havebeen arrested for

The Best Method of Medicine For the Treatment of Breast Cancer: CAM or Drugs

1514 words - 7 pages Extensive research has been done in the field of oncology to try and determine the best and most effective methods to cure cancer. Cancer has been a very critical and long term problem that has been seen for centuries. Two distinct fields of study are the use of pharmaceutical drugs and complementary and alternative medicines (CAM). Both of these fields produce drastically different results based on the side effects, effectiveness, and overall

The Best Method of Medicine For the Treatment of Cancer: CAM or Drugs

2671 words - 11 pages develop late toxicity. Biomedicine The major advancements in biomedicine have made a profound impact on our everyday lives. We no longer have to worry about a variety of diseases because we know that there is a treatment for them. Pharmaceutical drugs and innovative procedures have saved patient’s lives and helped stop the severe effects of several diseases that otherwise could have killed us. Biomedicine refers to the use of pharmaceuticals

Similar Essays

The Market For Illegal Drugs And The War On Drugs

1212 words - 5 pages [Cartels] criminals causes the deaths of police officers, soldiers and civilians.” Taking a closer look at the economic forces that have been driving the supply end of this business as well as evaluating the economic costs of the war will give us a better understanding of the reasoning behind her statement. First lets put into perspective the characteristics that define the market for illegal drugs. We begin by distinguishing the steep

The Black Market Or The Underground Market

791 words - 4 pages , black markets hurt sellers through defective and harmful products. This can be from “knockoff” cell phones that shock consumers to illegal drugs that should not be sold in the first place for the reason that they illegal since they are too dangerous to consume. An example of a black market that is hurting governments and sellers is cigarette diversion or more commonly known as cigarette smuggling. The cigarette smuggler buys a large quantity of

The Underground Man's Desire For Misery

1365 words - 5 pages thoroughly. He is highly contradictory in his rationalization of his own practices, but appears to rather revile in his own self-pity. The Underground man has a penchant for feeling sorry for himself and rather than take part in society naturally, he forcibly places himself in encounters that will undoubtedly cause him angst or bodily harm. If he were to find himself in the position of Joseph K. in Kafka's The Trial, he would likely be

The Case For Legalizing Drugs Essay

3046 words - 12 pages substances by deeming them legaland prohibit others by creating penalties for their use?The issue of prohibition is certainly not a new one to our nation. In 1919, the 18th Amendmentprohibited the manufacture, sale or transportation of alcoholic beverages. 'Suddenly honest,responsible Americans who just wanted a drink, were turned into criminals. Respectable barsbecame underground speak-easys, and legitimate liquor manufacturers were replaced by