Marijuana Legalized

The Supply and Demand of Marijuana

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This paper will discuss the supply and demand for Marijuana should it be legalized. The law of supply and demand is a very interesting concept. It is also a complicated theory. First one has to decide what the product is and how it is perceived via demand and supply. Which brings this paper to its product marijuana? This drug is illegal and has consequences, sometimes severe consequences. Determining how much to charge for this product has to take a lot of things into consideration. The risk has to be accessed pertaining to supply and demand. Consumers will pay a higher price to compensate for the risk in buying or selling marijuana. Consequently, marijuana is widely used, and is likely no more harmful than currently legal drugs such as tobacco and alcohol. Therefore, it has a good chance of being legalized.

This article posed the question of how supply and demand would be affected by legalization of marijuana. It was stated that the street price of the marijuana stays the same, so it would stand to reason the quantity demanded would remain the same. This is not the case; it's quite likely that the demand for marijuana would change from legalization. The risk that the consumer would be taking would now be eliminated, so therefore the demand would rise. : Increased marijuana use can have ill effects on the health of the population but the increased sales bring in more revenue for the government. Therefore the government would be able to control the amount of marijuana consumed by increasing or...