Friday, 6 February 2009

Drugs & Recession

The recession is hitting all areas of our economy, at home and abroad. Prices are being driven down by the lack of demand, so this leads me to the heart of my wonderings. Has the price of Narcotics been driven down by the global recession? How about other illegal good's such as Firearms, Prostitutes, Golliwogs and Child Pornography?

The answer is probably no. These products are inelastic, mainly due to their illegal and addictive nature. They simply don't need to lower the price to sell their product, people will sacrifice other things in their lives. So, to all you Drug Dealers and Pimps out there. Keep your price stable, profit maximise.

P.S The news is annoying, they seem to only be capable of covering one story at a time: recession, recession, Andrew Sachs, Obama, recession, recession, snow, snow.

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