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What do you think would be the effect on the equilibrium price and quantity of marijuana...

What do you think would be the effect on the equilibrium price and quantity of marijuana if its sale and consumption were legalized? Will the Supply Curve shift, and if so, to which direction? How about the Demand curve? Will it shift, and if so, to which direction? What will happen to price and quantity exchanged?

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Answer #1

If the sale of Marijuana is legalized the sale of it will become easier with less regulation in the market. It will increase the number of sellers selling the product in the market.

A large number of the seller in the market will shift the supply curve to the right i.e. at a higher quantity sold and lower the price. It will not affect the demand curve but will increase the quantity demanded at a lower price.

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