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

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