This assignment involves supply and demand. Think and sketch graphs before you t

This assignment involves supply and demand. Think and sketch graphs before you try to write. Your submission should be about 2 pages (normal fonts and margins, double spaced). This assignment requires that you include graphing. You may hand-draw your graphs into your writing and then scan the single document for submission, or you may take a photo of your graphs and attach the photo along with your typed response. You can insert an image of your graphs into your word document. So long as you include the text and your graphs in your response (and the instructor can follow how they are connected), this will meet the requirement. Again, your assignment response should be in the form of economic analysis, not personal opinion or belief. Here is the issue for your to consider using supply and demand graphing as your guide:
Start with a market for cocaine where cocaine is illegal, as it is today in the U.S. There is still a market, however, even though it is a black market, meaning not a legal one. There are still buyers and sellers coming together to buy and sell and market forces help move that illegal market to an equilibrium price. However, since all transactions are illegal, both buyers and sellers (especially sellers) risk criminal prosecution. Graph an illegal market at an equilibrium price and quantity. Show graphically and then explain what do you think would happen to the equilibrium price and quantity traded if the law changed to make buying and selling cocaine legal? (HINT: you may want to move both the demand and supply curves and explain why you are moving them.) If you wanted to cut down on petty thievery to support buying cocaine, would you recommend legalizing cocaine as a matter of public policy?