Marijuana also known as Cannabis and Weed is a type of plant that is used for both psycho-pharmaceutical drugs and medicine. Currently in Canada, there are no provinces that have legalized the use of marijuana. While, in the United States there are 18 states that have legalized marijuana for medical use and only 2 states have openly legalized the use of marijuana both medically and recreationally. Marijuana is very costly due to the fact that it is difficult to produce and also, because many states have strongly enforced and restricted marijuana, not as many producers and sellers get much of the product. The limited quantity of the marijuana, forces the producers and sellers to sell it at a much higher cost. In the podcast, Chuck, the marijuana dealer explained that its much more profitable to sell in a state where is it illegal, than selling is a place such as California where it is legal for medical use. …show more content…
This is represented on the Legal Market (California) graph, as supply shifts to the right this causes an increase, the supply curve shifts from S1 to S2 as labeled on the graph. This indicates that the price of the marijuana is going to decrease, as the quantity will increase. California, is a state where many pharmacies, drug/vitamin stores have competition, which basically kicks the drug dealers off the radar, this lowers their competitive advantage. On the other hand, the states that have not legalized the use of marijuana, such as New York, their market changes, and this is by their