Question
In the following policy scenarios, explain how the policy described might cause a shift of either the supply and/or the demand curve in a particular
In the following policy scenarios, explain how the policy described might cause a shift of either the supply and/or the demand curve in a particular market and what effect this would have on the price and/or the quantity in that market. Use a graph to illustrate your answer. Restrict your answers to an analysis of markets in the short-run and assume 'average' looking supply and demand curves in all cases. Write your answer and draw your graph in the space provided.
a. As part of Oregon's marijuana legalization process, the state has been slow to certify a sufficient number of labs that can verify the purity and safety of legal cannabis products. This limits the number of producers whose products can be legally sold. What is the impact on the market for legal cannabis products?
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