Dec 12, 2007

Total USA revenue

Because of this adverse effect of drug interdiction, some analysts argue for alternative
approaches to the drug problem. Rather than trying to reduce the supply
of drugs, policymakers might try to reduce the demand by pursuing a policy of
drug education. Successful drug education has the effects shown in panel (b) of
Figure 5-10. The demand curve shifts to the left from D1 to D2. As a result, the equilibrium
quantity falls from Q1 to Q2, and the equilibrium price falls from P1 to P2.
Total revenue, which is price times quantity, also falls. Thus, in contrast to drug interdiction,
drug education can reduce both drug use and drug-related crime.

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