Using supply and demand analysis, i will try to explain the reasons for a rise in the price of cocaine.So,let's start.
Nowadays people start taking drugs more and more.
They become dependant on them and the price of drugs doesn't metter something. Cocaine is the sort of drugs, which is extremely popular even in England.
Cocaine is perfectly inelastic good, however it has substitutes, such is LSD or Heroin, but if person got used to it, he cant use another sort of drug.
Goverment has tried to reduce supply many many times, but people always find ways how to cheat goverment.
As time passes, lifestyle always changes, and tastes are not an exception. But we can't speak about tastes in drugs, because we don't use them. However, what we know for sure is that there is an economis crisis now and income of people has changed badly.
So, as i said, people start taking drugs more and demand increases. If demand increases, the price goes up and supply extends.
If drug addict person want to use drugs, then he must either die, because of lack of money, or work harder.
