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Figure A shows possible supply and demand curves in the market for medical marijuana in Florida. Refer to the Special Notes for Quiz 10 description
Figure A shows possible supply and demand curves in the market for medical marijuana in Florida. Refer to the Special Notes for Quiz 10 description if you haven't already done so. Assume the market is initially in equilibrium at Point F (notice that this is a change from all previous versions of this type of question). What equilibrium points would be reached as the market responds to these three events. The events are specified in the order in which they occur and the possible equilibrium sequences are in order also. i. The federal government removes marijuana from the Schedule I narcotics list and places it in Schedule III making it legal to prescribe and possess for medical purposes. Large numbers of patients who were unwilling to deal with illegal drugs enter the medical marijuana market ii. The Centers for Medicare and Medicaid Services authorize payment for both prescribing doctor visits and for marijuana prescriptions (hint: think about what happens for the co-pays of patients) iii. Large commercial growers obtain FDA approval to produce medical marijuana and bypass state approvals to enter the market in Florida (and other states)
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