ECONOMICS DQ

Respond to the following in a minimum of 175 words:

1. Read the following statement and discuss if you agree or disagree, and your rationale: If the demand of illegal drugs is inelastic, increased arrests of illegal-drug sellers will increase total expenditures on illegal drugs.

Discuss at least 2 reasons for the change in this scenario: Early suppliers of more fuel-efficient cars were able to charge premium prices for them, but that ability faded as other suppliers adopted similar technologies.

2. According to Fortune Magazine, the term “invisible hand” of the market "is used to describe how the self-interested behavior of people in a marketplace leads to the greater good for all. No need to rely on concerted efforts of the government or the church to direct commercial activity. If the proper economic and legal institutions are set up, we can all be made better if simply left to our own devices."

Is it possible to say that we are "simply left to our own devices" in the marketplace, when there is political and expert disagreement about the meaning of the word "proper" in the highlighted text above, as is so evident in the case of the US today and historically?