What is the economics of marijuana legalization?
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Distributors of cigarettes earn some monopoly profits in their local markets but see them slowly erode as substitutes enter the market. Suppose Nebraska has scheduled a vote on the legalization of marijuana. Additionally, suppose that marijuana and cigarettes are substitutes and that the legalization of marijuana would lead to a decrease in the price of marijuana.
Given the relationship between marijuana and cigarettes, the legalization of marijuana would lead to_______(an increase/a decrease) in demand for cigarettes. Thus, distributors of cigarettes would likely____(Support/oppose) the legalization of marijuana.
Legalization of drugs such as marijuana, cocaine and heroin often provokes intense disagreement among citizens as well as policymakers. After completing some research on the legalization of drugs, take a position for or against legalization and provide adequate support for your positionâ. Minimum of 300 words and try to use economics terms please.