What trend is described for cocaine's purity and price in recent decades?

• A. Purity increased and price declined
• B. Purity increased and price increased
• C. Purity decreased and price increased
• D. Purity decreased and price decreased

Answer: (A)

The key idea here is how illicit markets respond to shifts in supply. When the supply of cocaine expands and trafficking becomes more efficient, more of the drug reaches street markets in a purer form. That means street samples show higher purity. At the same time, the larger, more competitive supply pushes prices down. So, in recent decades you see purer cocaine available at lower prices on the street. This pattern reflects the basic economics of supply and competition in an illegal market: more supply and better distribution drive up purity and push prices down, even as the overall potency of what buyers purchase increases.