Question

. Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes. When North Carolina considered legislation on legalizing medical marijuana, which side would you think that North Carolina beer distributors were on? What about snack food vendors? Why?

Answer 1

Shack food Vendoys and beey distafbuto8s i- *Substitute goods- Substitute goods efex to Those 3oods which are substituted ín Place of each otho ExamPles of Substitute goods areTea and Coffee" * CoM PleMenta goods complementars oods efex to those goods which togethex Satisfy the needs af he Consumess. Examples of ComPlementa g0ods axeCox and Petoo) Nhen countd "C" Voted on legalizina mayijuana, it would have divergent imPacts on the beer distaibutos and the Snack food Vendos AS maxiouana and beex ase close substitute gods, so-the County c's vote on Legalizing maxisuana would Shiftthe Customers fabm beex to maxijuana AS Consumexs switched tueiY demand fom bees to masijuana, the demand foy beex will fall whan demand falls, xevenue wi aiso get yeduced and so he Pofits *It is being expected that the beer distxibutors wi OPPOse this Legalization *Now, i one talks about the Snack Pood Vendos maxijuana and snack food aye Complement to each othey The LegaliZatlon of mariauana would allow the Consumers to buy more off Shack foods as well as both goods axe Com Plementad in natuxe.

when demand fox SnaCK food incseases,theiy evenues will aiso incsease and so the Potits * It is beina expected that Snack food Vendoxs wil favox this Lega lization.