AB224: Microeconomics Unit 3: Supply and Demand - Discussion

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.

1. What will happen to existing supply avenues?
2. Will legalization significantly change demand? How?
3. Would one expect prices to change significantly? How?
4. What would be the costs and benefits to governments, both in changes in enforcement requirements and in potential tax revenue?

                         Links to Other AB 224 Tutorials

      Just click the Discussion to go to respective tutorial.

-AB224: Microeconomics Unit 1: Beginning Principles – Discussion

-AB224: Microeconomics Unit 2: Scarce Resources and Trade - Discussion

- AB224: Microeconomics Unit 3: Supply and Demand - Discussion

- AB224: Microeconomics Unit 4: Consumer Choice and Utility Maximization - Discussion

- AB224: Microeconomics Unit 5: Surplus - Discussion

- AB224: Microeconomics Unit 6: Governmental Price Controls - Discussion

- AB224: Microeconomics Unit 7: Fixed Costs and Variable Costs - Discussion

- AB224: Microeconomics Unit 8: Cost Analysis and The Perfectly Competitive Market - Discussion

-AB224: Microeconomics Unit 8: Cost Analysis and The Perfectly Competitive Market - Discussion