Question

Do you believe the elasticity of marijuana is inelastic and if legalized demand will not increase? Do you also believe that many of society's social ills associated with drugs will ease not only from marijuana being legalized, but also from the taxes garnered from its legalization used to assist people?

Or do you believe the elasticity of marijuana is elastic and if legalized the demand for these will increase? Do you also believe that by legalizing marijuana will create addicts out of those who simply "dabble" in drugs thus putting a further strain on society, which the tax benefits gained from legalizing it cannot absorb?

Please explain the reason behind your viewpoint. (Use and sight your sources.)

Answer 1

According to me in short term the demand for marijuana will in increase if it is legalized. This is because that people will not be penalized even if they are caught using marijuana. It will be easier for the people to get marijuana. As a result demand will increase in the short run. However if the prices are not reduced, then whether legalization will increase the quantity demanded at given price or not, cannot be said with surety. Legalization would likely increase drug use if it lowered prices of drugs as the quantity demanded of drugs also tends to decline as their price falls. Instead of assuming it to be zero price elasticity we can say it to be having 1/2 price elasticity. There will always be dilemma in the minds of people whether to obey law or to go against the authority.

Yes, I believe that if taxes are not imposed on marijuana than it will create a society full of addicts. It's a much better drug and gives more pleasure to the user as compared to alcohol. People get hooked up to it and consider it to be very enjoyable. So, it should be legalized and should be taxed in the same way as alcohol and tobacco are being taxed.