Your question really has nothing to do with marijuana.
The actual good being sold is not relevant. All you need to do here is the supply and
demand analysis. So, what you are really asking here is what happens to the equilibrium
price of a good if the demand for that good increases while supply
falls.
Both an increase in demand and a decrease in supply
will cause the price of the good to increase. If there is both an increase in demand
and a decrease in supply, the price is likely to rise a great deal. Increases in demand
cause prices to rise because more people are competing for a given amount of the good.
If the supply of the good falls at the same time, there will be more people competing
for less of the good and the price will go up dramatically.
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