You've explained what happens economically when something is prohibited, whether it be alcohol, drugs, or anything else.  And for the record, I think you're dead on.

But, what you didn't do, was answer the question I asked.  Instead, you responded with a more generic question, and then a completely unrelated question, then onto a different topic entirely.  My, "Don't do point A", still stands.

In your, "Second", the issue I have is, when people join in on both sides of the new (illegal) economy, both buyers and sellers, they understand what they are doing is illegal.  They understand they'll have no protection in the courts, or by police, etc., yet they engage in the activity anyways.  It's not like they assumed they'd have protection, only to have the rug pulled out from under them.