Good morning economists! I was discussing the impact of recession on different goods markets the other day with a few of my students. I asked for some examples of a good that would exhibit no change in quantity demanded no matter the change in price (in other words a perfectly inelastic demand curve). A student was quick to suggest that illegal substances such as drugs can have such characteristics due to the addictive qualities that they have on people. Although, not the example I was looking for, I did have to agree with his remarks and then a question popped in my head.
Are drug addicts consuming the same, decreased or increased quantities of the drug during times of recession? Are they looking for a way out of their problems by increasing consumption or are they victims of the bad economy therefore reducing their usage? And independently of consumers, are drug dealers more inclined to provide less pure of a product?
No matter the answers to these questions, a Brazilian politician who was running for city council found that the best way to attract voters was to attach a bag of cocaine to the leaflet that was advertising her campaign. Needless to say, she was arrested by the police and incriminating evidence was found in her car.
I am wondering whether voters would have a clear enough head to pick her out of the ballot if they used the cocaine before going to the polls.
Have an addiction free day (does not include coffee)!