Marijuana Discussion

Marijuana Discussion
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Institution
The supply and demand for Marijuana are very high even though most of the states are yet to legalize marijuana trade. The current trade of marijuana occurs in the black market, which means that the states and the federal government are losing millions regarding revenues. Therefore, legalizing marijuana will open many avenues where the government will be able to maintain a high level of regulation on these concepts, which are essential in improving revenues. It is easier to regulate marijuana trade when the business is legal because traders will be issued with licenses to trade, which will help in generating revenues as well as limiting the trade (Maier et al., 2017).
The demand and supply will be critically managed within the market since it would be easier to determine the control of trade considering its influence on users. The existing supply avenues will be closed since they operate illegally and unregulated. Regulation will be necessary for defining new supply avenues.
Legalization will have a significant positive influence on demand considering that currently many people are afraid of the restr8ctions that are put in place including a jail term. Legalization will encourage open business where demand will increase. The prices of marijuana will depend on many factors including the supply and government taxation. The pricing strategy adopted significantly focuses on generating revenues for traders hence the price will be higher…