Question

The sale of illegal drugs has consequences for both sellers and buyers. However, legal penalties are generally imposed aggressively on the suppliers of drugs rather than on the demanders. Think about the impact these penalties likely have on supply and demand

i understand that the penalties will impact on the market quantity of both(decrease), but I need more explanation

Answer 1

When you understand the penalties are imposed on both the parties, one has to understand the fact that the penalties on suppliers are more so that the supply reduces to a greater extent when compared to that of demand because the suppliers are punished more, so what happens here is that the quantity and ultimately reduces but with the supply shifting to a greater extent rather than demand where decrease supply causes the decrease in price and decrease in demand causes inrease in price, because the effect of supply is more, you can understand that ultimately the price will increase for the price of illegal drugs increases on the whole