Over the past three years, from July 1990 through the spring of 1993, there was a decline in the price of street level purchases of cocaine HCl. Since the spring of 1993, the street level prices of cocaine seem to be slowly increasing. Looking at the same indicators used to measure marijuana availability, the availability of cocaine HCl declined during 1992, then remained stable during most of 1993. Also, there has been little growth in the number of cocaine HCl users. The declining price of cocaine HCl is likely linked to an overall decline in its popularity.
Prices can fall for several reasons.
They can drop despite a rise in demand, if supply is able to increase faster than demand rises. This was seen with marijuana prices, as they fell despite indications of increased demand. With cocaine HCl, there are indications that the drug became less popular during 1992 and through 1993. Generally, as a product becomes less desirable and users find substitutes, the price will fall as buyers are willing to pay less. Also, sellers may find themselves with an unsold inventory, and are forced to lower prices in order to make a sale.