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Suppose that legalizing the use of marijuana would decrease its price by 78 percent. If the price elasticity of demand for marijuana is -2.50, what
- Suppose that legalizing the use of marijuana would decrease its price by 78 percent. If the price elasticity of demand for marijuana is -2.50, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?
- Suppose instead that the price elasticity of demand for marijuana is -0.16. What would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana?
- The higher the absolute value of the price elasticity of demand for marijuana, the the increase in marijuana use that would result from legalization.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
