Incorrect.
If crack was legalized and prices went down by 50% - which they wouldn't, because even if it were legal it would still be heavily taxed just as alcohol and tobacco are - there would be other problems.
You see, crack addicts can't hold down normal jobs. As I pointed out earlier, alcoholics can often be functional at certain jobs while having a buzz on - but crackheads can't even do the jobs that potheads can do.
They would still, at reduced prices, have to do $200-300 worth of drugs a week and they wouldn't be employable.
That may be much cheaper that the $600-1000 cost of an illegal habit, but to someone with no money there's no real difference.
Also, crackheads tend to be homeless since their rent money is generally one of the first things to go into their pipe.
Gross underestimate. The price of heroin (an economically comparable substance) goes up 30-fold just during transport from country of origin to country of use.