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Estimate based on that elasticity

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There has been much discussion over whether marijuana should be legalized for consumption beyondmedical use. Assume that if it becomes legal the price will be cut in half. Given that Frank suggests theestimate of the price elasticity for marijuana is -1.0, what would you expect to be the change in marijuanausage? Because that legalization would in some sense bring an entirely new market segment into thelegal market arena, why or why not would you have a high degree of confidence in your change in usage estimate based on that elasticity?

Reference no: EM131395216

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