A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed:
• Reduced police efforts have increased the availability of drugs on the street.
• Cutbacks in education efforts have decreased awareness of the dangers of drug addiction.
a. Use supply-and-demand to show how each of these hypotheses could lead to an increase in quantity of drugs consumed.
b How could information on what has happened to the price of drugs help us to distinguish between these explanations?
