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Supply and Demand in the Cocaine Industry

The Wall Street Journal's Informed Reader has picked up an interesting article on cocaine in the Atlantic (behind a subscription firewall here). Apparently the street price of a gram of cocaine is now down to $20, down from $200 in the late 1990s and $600 in the early 1980s. And yet, despite some of the steepest price drops the world has ever seen, demand for the drug is no better than steady.

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