Question

If marijuana were legalized, it is likely that there would be an increase in the demand for marijuana. If demand for marijuana is inelastic and the supply of marijuana is perfectly elastic, this will result in____________,

Answer 1

Answer:

higher prices and higher total revenue from marijuana sales.

Explanation:

If marijuana is legalised the demand for it will rise and because of addiction the demand will remain high and be inelastic to price changes. Users of marijuana will be willing to pay high prices for it.

If supply is elastic, meaning an increase in price will result in increased supply, and decrease in price will result in decreased supply. Then suppliers will meet the high sand but at a high price.

This will result in high price and high revenue from marijuana.

Answer 2

Answer:

eventually it would end up in a higher percentage of drug addicts,however it would have a higher percentage of revenue.

Explanation: