Washburn5. September 2, 2014Econ 101- Turchio Total Costo In State- $21,992o OOS- $44,428o Duke- $65,835o Minimum WageNS NDo Drug War Policyo Reduce demando Reduce Supplyo Resultso Police get frustrated, recklessly disobey civil rightso Or “If you can’t beat them, join them”o Legalization, tax, and controlo Gets rid of some organized crimeo Increase revenueo Assumptionso 2 goods availableo Pf- $4/unito Pc= $2/unito M= $120/montho M=Pf(F) + Pc(C) Budgeto 120= 4(F)+2(C)o 120-4F=2Co 60-2F=C M/Pc – Pf/Pc *F=Co Moving from red to yellow is opportunity cost giving up clothing for more foodo Price of clothing rises, price of food fallso Slope flattens, wider line extends from the origino Non satisfactiono Substitutabilityo Diminishing Marginal rate of substitutionSupplyLegalIllegalPriceQuantitySPriceDQuantity60Slope= -2Budget
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