Unit 3 Discussion Post

Unit 3 Discussion Post - I believe that prices would...

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Professor Sjuib and Classmates: There is much discussion in the press about several states moving to legalizing marijuana, either for only medical purposes, or more extremely, for recreational purposes. Looking only at the economic impact (not moral implications) of such changes in the laws, discuss how the existing system of supply and demand for illegal marijuana will be changed with the new legalization. a. What will happen to existing supply avenues? Existing supply avenues will decrease because once it’s legalized, it will not be as difficult to find a supplier. It will make it much easier to access and the supply needs will increase. b. Will legalization significantly change demand? How? I believe that legalization will significantly change demand because more individuals will be able to legally use marijuana for recreational purposes. Many individuals that would normally not try it would probably try it at least once if it was legal. c. Would one expect prices to change significantly? How?
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Unformatted text preview: I believe that prices would fluctuate depending on the response. More than likely prices would go up at first and as the demand grows, pricing would be able to come down. d. What would be the costs and benefits to governments, both in changes in enforcement requirements and in potential tax revenue? There would definitely be a cost to the government, however, I believe that the benefits would definitely be that more money would be coming in to our economy. “Replacing marijuana prohibition with a system of taxation and regulation similar to that used for alcoholic beverages would produce combined savings and tax revenues of between $10 billion and $14 billion per year, finds a June 2005 report by Dr. Jeffrey Miron, visiting professor of economics at Harvard University.”(Word Press, 2016) Thank you, Jill Willis Reference Word Press. (2016). Cost of Marijuana Prohibition: Economic Analysis. Retrieved March 19, 2016, from ...
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