If the government legalizes the purchase and sale of marijuana,the equilibrium quantity would then _________ and the price would then ________ if the supply of marijuana increased by _______ than the demand for marijuana increased.

Question

Quizplus · Accepted Answer

If the supply of marijuana increased by more than the demand for marijuana, there would be excess supply in the market, which would cause the price to fall. As the purchase and sale of marijuana are legal, the equilibrium quantity would rise due to the increased availability of the product. Therefore, the price would fall (due to excess supply) and the quantity demanded would rise, resulting in a higher equilibrium quantity. Thus, option C is the correct answer.

If the Government Legalizes the Purchase and Sale of Marijuana,the