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Using the concept of substitutes and complements, explain with the help of a diagram how legalizing cannabis may affect the sales of alcohol and cigarettes.

Using the concept of substitutes and complements, explain with the help of a diagram how legalizing cannabis may affect the sales of alcohol and cigarettes. When the State government evaluates the effect of legalizing cannabis on tax revenue, should it look only at the sales of cannabis? Or, should it also consider the changes in the sales of alcohol and cigarettes?

Assume cannabis are substitutes for alcohol and cigarettes

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