Tuesday, November 4, 2014
Oregon's Cheap Legal Weed Could Starve Washington's Market
http://www.huffingtonpost.com/2014/11/01/oregon-legal-weed_n_6084208.html DUE 10 NOV 2014. Using the Laws of Supply and Demand, discuss the issues involved with Oregon passing legislation for recreational marijuana. How will government intervention affect the marijuana markets in Washington? How will government intervention affect the marijuana markets in Oregon? How does this lead to the creation (or sustainability) of black markets?
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Even though Washington and Oregon border each other they have differing prices and policies when it comes to marijuana. Washington already has legal marijuana. But, this marijuana is only sold according to the strict zoning laws.Since Washington has supply shortages, Oregon may be a hot spot for marijuana. An ounce for marijuana in Washington is 200 dollars. Oregon will sell marijuana for 145 dollars minus the sales tax. Since Oregon's tax would be by weight and Washington by price the supply problems in Washington will subside and the price will go down. The taxes consumers pay lowers creating an equilibrium. Washington have chased drug dealers off their doorsteps. Black market weed is a big issue in that state. On the other hand, Oregon will legalized recreational marijuana which is cheaper. Oregon will basically thrive in that industry because no matter how much dispensaries divide an ounce of marijuana and mark up the price, it will always be cheaper. The expensive prices of marijuana lead black markets to continue. If marijuana is cheaper in the black market people will buy from them instead.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they may be stealing business from Washington since their prices are expected to be very low in comparison to Washington. An ounce of weed in Washington costs about $500, but an ounce of weed in Oregon would cost about $145. The reason why the cost of weed is so much greater in Washington is because they have a limited supply and a high demand. Another reason why the price is so high is because they have hefty taxes every step of the way that leads to the sale of it. They must pay about thirty to forty percent taxes by the end of the process. Due to this, the price greatly increases. According to Brian Budz, the co-owner of New Vansterdam (retail Marijuana store), is concerned that his business will go out of business if Oregon legalizes retail marijuana. Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].” Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, making the taxes almost equal to Washington’s, if they decide to alleviate some of Washington’s taxes. If taxes and prices are sky-high then there will be black markets. Right now in Washington, there is a black market for weed because the price of weed per ounce is about $500. In the black market, the price is cut in half, which appeals more to customers. The same thing will happen in Oregon’s prices are too high.
ReplyDeleteA huge issue brought up with Oregon passing legislation for recreational marijuana is that people from Washington will bring their money to Oregon causing Washington to lose business. The prices in Oregon will be much lower because of lower taxes and regulation. Because Washington has a growing cap the producers charge very high to make a profit. Government intervention will affect marijuana markets in Washington because they won't be able to produce as much weed as they need. There have already been supply shortages and high taxing in Washington. Government intervention will affect marijuana markets in Oregon in a good way, because they don't pay sales tax and the taxes are not very high. Also they can grow as much as they want, if the government was involved chances are they will raise taxes and put a selling cap. The black market is sustained for this reason because these government implications are useless and users would rather pay less, even if that means illegally obtaining it. I think the government should work with the producers and not take advantage of an already struggling businesses. - Sam Mohammed
ReplyDeletePrices of weed in Washington are extremely high. If Oregon legalizes recreational marijuana, Washington may lose some business at first. Eventually it would work out because Washington would be forced to lower their prices. Competitive pricing will take place because Southern Washington residents may enter Oregon to buy marijuana. As for northern Washington, black markets will benefit. Prices of marijuana will remain just cheap enough that they will take customers from the legal market. When Washington realizes that there is a high demand for reasonably priced marijuana, an equilibrium may occur. If everybody makes their prices so that supply and demand are equal, everybody will benefit. If black market continues to keep their prices slightly below the legal market, they will continue to profit as well. Oregon will eventually raise their prices to be about the same as in Washington. If both states have similar prices, they can keep their own state customers.
ReplyDeleteIf Oregon passes legislation for legal recreational marijuana, it will seep out business from Washington. Marijuana is taxed every step of the way, from the farmer, down to the consumer. Marijuana in Oregon will be cheaper than Washington, no matter the weight of the weed, this makes it too predictable that people will visit the state just for the herb. The marijuana markets in Washington will likely run out of business, due to the fact that more people will obtain this product from Oregon, where taxes are lower, therefore the price is cheaper. Oregon's economy can also boost because some people will stay to live there for their Kush. Black markets will continue to sustain and grow themselves as long as it takes for the law to pass, if it passes. Population can also arise in Oregon because of the drug.
ReplyDeleteThroughout this article, the main topic of discussion that is the ultimate issue is if Oregon's legalization of marijuana will market starve Washington's. This will therefore potentially result in the a loss of business from Washington which would not be beneficial to them. Oregon's market is a lot cheaper than that of Washington which can result in many consumer wanting to make purchases in Oregon rather than Washington. This puts Washington at an economic risk. In Washington, a gram of weed costs approximately 20 dollars. In ounces, that is $500 per ounce of weed. Compared to Oregon, the price of marijuana would be purchased at 145 dollars per ounce of weed. ECONorthwest says, Even if dispensaries divided that ounce into smaller units and marked up the price, that’s still significantly cheaper than what legal retail weed costs in many Washington dispensaries. Also, taxes are having an effect on this issue as well. The state’s pot prices are due to them raising the taxes. Customers end up paying a tax burden of 30-40 percent when they go to buy a dime bag. Washington is also under a shortage supply. This affects supply because when there is a decrease in quantity, the price will reflect that as well. Government intervention will affect the marijuana markets in Washington because if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay]. Eventually, there could be an equilibrium. Government intervention will affect the marijuana markets that are in Oregon because the tax would be based on weight whereas Washington's is based on the price of the marijuana. There is a huge black market for weed because many consumers are willing to do illegal activity in order to obtain weed at a lower price. The price is significantly lower as of right now in Oregon which will result in many people purchasing from them which results in a black market.
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ReplyDeleteIf Oregon passes the law for recreational marijuana, then Washington’s marijuana businesses will suffer. Residents of Washington are sure to flock to Oregon for their cheap fix of the drug. The government in Washington taxes marijuana at every step of its production, driving the prices sky-high. Producers are taxed for growth, and the consumers are maying 30-40% in taxes when they purchase marijuana in a store. An ounce is $500! Also, the Washington government put a cap on the number of stores allowed to be open into state. There is also a supply shortage of the herb, driving the producers crazy. Washington also distributed licenses to produce marijuana to people who weren’t prepared to take on the job, so all those people who aren't growing marijuana are not putting forth any product for the market. And, to make things even worse for producers in Washington, there are extremely strict zoning laws for marijuana cultivation, so producers who want to grow may not be able to because they cannot find a place to grow it. On the other hand, in Oregon, an ounce of marijuana is only $145, which is significantly cheaper than Washington’s price. Because Oregon does not have sales taxes, the prices for their marijuana will be significantly cheaper than those in Washington, so people will come from Washington as well as may other places in the United States to buy marijuana. Oregon will be making a lot of money off of its marijuana sales because its way cheaper there than it is in Washington, and the government isn't regulating everything that producers in Oregon do. The sky-high prices in Washington will drive people, if they aren't able to get to Oregon, to find their drug through other means. Some people just can’t afford the price of marijuana in Washington, so people who sell it illegally are getting plenty of business. Some vendors may even go to Oregon to buy their marijuana for cheap prices and then bring it across the border to Washington and sell it for profit, starting a drug trafficking business. The black market business will surely increase because of the ridiculous prices of marijuana in Washington.
ReplyDeleteIf Oregon passes legislation for recreational marijuana, the demand for marijuana in Washington will decrease, do to its higher prices. On the other hand, the demand for marijuana in Oregon will skyrocket as individuals from not only Oregon, but also Washington and other surrounding states will flock to buy this cheaper good. The supply for marijuana is capped in Washington due to certain government restrictions. However, if Oregon does not have these same restrictions, supply will increase right along with demand. The regulation of marijuana businesses in Washington by the government is affecting not only how much can be supplied, but also the price retailers must sell the drug at in order to cover all the extra taxes to make and sell. If such regulation by the government hits Oregon, the same problems will arise that are found in Washington, but due to the lower cost, the demand would probably stay better than that in Washington. By having such high prices and taxes, people find other ways to obtain marijuana through the black market. If such regulations stay the same, this sustainability of the black market will continue as more and more people purchase the drug through a different outlet. Washington currently has an ounce of marijuana priced at $500, while Oregon would price their ounce at $145. This $355 difference will eventually lead to Washington experiencing a decrease in their price and Oregon to increase their price, eventually reaching an agreeing equilibrium price.
ReplyDeleteWith Washington and Oregon being so close to each other, it’s only natural for one to steal business from the other. The decision to legalize recreational marijuana this past Tuesday would make the prices of pot a lot lower in Oregon, while prices in Washington are “sky high” allowing Oregon to steal a lot of Washington’s business. After being legalized in April of this year, a gram of marijuana was twenty dollars alone, over $500 for an ounce. With prices in Oregon starting low, it causes some competition with Washington. Normally what would happen is that Washington would want to lower their prices because they are losing so much business to Oregon, who will then want to continue competing to see who gets the most business, but by then the consumers wouldn’t demand as much and the suppliers wouldn’t be making a profit. Government intervention in Washington affects their market every step of the way by taxing everything involved in the process of manufacturing. Government caps placed on the number of shops that are allowed to open, and handing licenses out randomly, caused a shortage since the turnaround time for production is about three months. In short, Washington has many different regulations on the creation, production, and consumption of marijuana. If becomes legal, marijuana would be $145 an ounce, and even if all of the dispensaries divide and increase their prices they would still be significantly lower than those in Washington. Economist Robert Whelan basically says that everyone from Washington will be going to Oregon to purchase marijuana, which has no state taxes which in turn makes the prices even lower. Oregon taxes by weight while Washington is by the price. There would be an equilibrium eventually if Washington decides to lower taxes the problem of shortage is solved. But since prices are so high in Washington, there was the obvious black market that was selling the same amount for less than half the normal price and this black market will just become a larger thing if the prices don’t decrease.
ReplyDeleteOregon has went along and passed the The legalization of marijuana soon they will be selling recreational marijuana at low prices.Oregon is very close to Washington DC which allso has marijuana legalized but the difference between the two states is that they sell it at different prices Washington is more expensive I'll Oregon is way cheaper. Washington has large restrictions on the distribution the government is involved and has caps on prices to be able to meet the extra taxed to grow and sell. But it's Oregon started doing the same thing they would be in the same position as Washington DC. If that is to happen there will be an abundance of black markets selling the drug. Because Washington is selling it at 500 an ounce and Oregon 125 an ounce .this gap will cause for the two to find a state of equilibrium
ReplyDeleteIn Washington, the supply of marijuana has decreased based on the fact that though it takes time in order for the plant to grow, consumers are still paying the high price to obtain the drug. As Oregon passes the law for recreational marijuana, the demand in Washington will decrease based on the high prices and the demand in Oregon will increase based on their lower prices as consumers from other states will travel to Oregon for their prices. In Washington, the prices have skyrocketed because of the states taxes that are placed on the pot, paying a tax burden of 30-40% at the time of purchase. Also, because when the legalization had occurred, there is a supply shortage because of the cap that the state had put on the number of shops that are allowed open while giving out licenses to those who were either not prepared with the supply to open a shop or could not find a location to open a store. On the other hand, if Oregon were to legalize marijuana, the cost would just be $145 an ounce compared to the cost of Washington, while Oregon is one of the few states with no sales tax. In Washington, because the prices have exceeded, the black market has continued to expand as Washington is unable to snuff out the black market for weed. Based on both Oregon and Washington, if the prices will continue to increase and the prices of the black market will remain low, the black market will expand for consumers will continue to purchase from there.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they are taking away business from Washington since their prices are supposed to be very low in comparison to Washington. This will therefore potentially result in the loss of business from Washington which would not be beneficial to them.Oregon's market is a lot cheaper than Washington's, which can result in many consumers wanting to make purchases in Oregon than Washington's.This will put Washington at an economic risk. In Washington, a gram of weed costs about 20 dollars. In ounces, that is $500. Compared to Oregon, the price of marijuana would be purchased at 145 dollars per ounce of weed.The reason why the cost of weed is so much in Washington is because they have a limited supply and a high demand of it.Another reason why the price of weed is so high is because they have high taxes on it.Customers end up paying a horrible tax burden of 30-40 percent when they go to buy a dime bag.Government intervention will affect the marijuana markets in Washington because if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].Government intervention will affect the marijuana markets that are in Oregon because the tax would be based on weight whereas Washington's is based on the price of the marijuana.There are a lot of black market's for weed because many consumers are willing to do illegal activity in order to obtain weed at a lower price.The price is significantly lower in Oregon right now, but soon it will result in many people purchasing from them which results in a black market.
ReplyDeleteThe article states that ever since LEGAL marijuana went on sale in Washington consumers have been baffled at how expensive it is. At Cannabis City in Seattle, Washington a gram of weed costs about $20: That works out to be over $500 per ounce. Washington's pot prices are high for a multitude of reasons. Their state taxes fall onto MJ from the farm to the consumer. As a result, customers end up paying a tax burden of 30-40% when they seek purchasing. The other reason for high prices is that there is a supply shortage. There's a shortage in supply because the state put a cap on the number of shops allowed to open, and then decided to give licenses randomly to entrepreneurs with issues. Washington's supply shortages are also due to the fact that growers who were given licenses needed at least 3 months time to grow their plants. People are about saving as much money as possible. Because Washington is so overpriced, consumers seek alternatives (the Black Market). If they're able to maintain low-key profiles while buying CHEAP QUALITY pot, they're going to do so. It's as if you were going grocery shopping and knew for a fact that Publix had BOGO rice cakes, you'd head to Publix before Wal-Mart to save money on your rice cakes! It seems as though Government intervention in the marijuana market in Washington is clearly a misfortune to consumers and will definitely be a disaster for owners of businesses once the government intervenes in Oregon. With the competition in prices from Oregon, many shops' and businesses' failures are inevitable in Washington. I'd suggest business owners in Washington go on across the border and set up shop there before it's too late haha.
ReplyDeleteThis affects supply and demand in many ways, Washington taxes pot in every way possible-- from the farm to the consumer -- meaning that customers end up paying a tax burden of 30-40 percent when they go to buy a dime bag. On top of all that there is also a supply shortage. Washington put a cap on the number of shops allowed to open, and then handed out licenses randomly to entrepreneurs. Washington's supply shortages are also due to the fact that growers who were given licenses needed time to cultivate the plants, which takes months to do. So since the demand for weed is high, and the supply of weed is low, it causes prices in Washington to be unreasonably high. According to Brian Budz, the co-owner of New Vansterdam (retail Marijuana store), is concerned that he will go out of business if Oregon legalizes weed. Government intervention will greatly affect Washington; “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay" Black markets will still be very strong in Washington, because weed is nearly half the cost on the streets than it is legal. "At Cannabis City in Seattle, a gram of weed costs about $20: That works out to be over $500 per ounce. Meanwhile, on the black market in Washington, an ounce of pot costs about half that, according to the website Price Of Weed, which crowd sources the cost of marijuana in each state."
ReplyDeleteALSO if you want $100 giftcard to Amazon.com for free go to this website http://youtu.be/Q4vlfpeVSCE !!! Make sure you post it everywhere so everyone can have some!
DeletePrices in Washington for marijuana is much more expensive then that in Oregon, due to this fact, people from the state of Washington are bringing their business for the purchase to Oregon, which is causing the state of Washington to lose a whole lot of business. There is a limited supply of marijuana in Washington and a high demand for it so that causes the price to increase a lot and the taxes placed on it also does not really help the situation. Eventually, Washington wont have enough business in the marijana market and it'll fade away. People will continue getting their drugs from Oregon because it is so much cheaper than that of Washington. If they were to make it so that the supply and demand are equal then maybe everyone will be able to benefit from it but no one is because of what is happening right now. If the black market is able to have marijuana at a cheaper price, then i believe that even though it is legal in those 2 states, people will obviously choose the cheaper way to get high, which is the black market. Most people will agree that the cheaper way is the way to go.
ReplyDeleteFirst of all, according to http://www.investopedia.com the law of supply is that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale. And the law of demand is that the higher the price, the lower the quantity demanded, because consumers’ opportunity cost to acquire that good or service increases, and they must make more tradeoffs to acquire the more expensive product. In Oregon, if the prices are lower and then the will quantity increase then all of Washington’s customers will go to Oregon and buy it from there, causing Washington to lose tons of money and the weed industry might even be closed down in Washington. In that case, graph for Oregon would be the supply curve to shift left and the prices to rise. According to the article, in Washington an ounce of weed would cost $500 and in Oregon an ounce only costs $145, that’s a big difference. The government’s intervention in Washington has caused for prices to be high when an excise tax is placed on wholesale consumption. Like the article stated “His business is forced to pay a 25 percent excise tax when they buy weed wholesale from a grower and another 25 percent fee when they sell to the customer, Budz said. “And that doesn’t include the federal taxes, or the fact that because we’re selling a Schedule I drug, we can’t write anything off. So we’re getting blasted from all angles.” The government intervenes in Oregon by making it much easier for retailers to sell and make a profit. So if Washington lowers the price then eventually there will be an equilibrium. This will lead to the creation of black market in Washington because the prices are way too high for anyone to purchase any weed. But they legalized it in the first place to lower the illegal selling and buying of weed, but if they are making the prices too high then they will have to go back and sell it through the black market.
ReplyDeleteThe biggest issue about Oregon passing legislation for recreational marijuana is the fact that they might possibly be taking away economical opportunities and competing with business in Washington since their prices are expected to be very low compared to Washington. An ounce of weed in Washington costs about $500, while in Oregon, it would only be about $145. Washington has a limited supply of weed causing demand to be higher and prices to also be much higher than in Oregon. Government intervention will affect the marijuana markets in Washington because if Washington comes to lower there prices in the future, this will consequently lower the amount of taxes that the consumers are paying for their weed. Eventually, an equilibrium can be met. Government intervention would affect the marijuana markets of Oregon because the tax would be based on weight rather than the price of marijuana as it is done in Washington. If consumers can find marijuana for less money in the black market, they will buy from them instead.
ReplyDeleteThe issues involved with Oregon passing legislation for recreational marijuana are that since since the supply curve will shift to the right, prices will be forced down causing Washington to lower the prices of their marijuana. The demand curve for Oregon's marijuana will shift to the right because of their lower prices, they can also raise the prices of their marijuana, but just make sure that it is still below Washington's high prices. Also the demand curve for Washington's marijuana will shift to the left as people drive into Oregon to purchase their weed. This will result in many retail marijuana stores to go out of business in Washington. Government intervention has affected the marijuana markets in Washington because their is only a certain amount of marijuana retailers and the government has placed high taxes on it, which has driven the prices very high. On the other hand, Oregon has no sales tax, and the laws would make it easier for retailers to sell at a good price and make a decent profit because the taxes are much lower. Washington's high prices would help sustain the black markets for marijuana in that state because people who can afford to buy the expensive weed will look to dealers where they can get it for half the price of what it would be at the dispensary.
ReplyDeleteThe largest issue involved with Oregon passing the legislation for recreational marijuana use is that it would be stealing revenue from the stores selling it in Washington. Since their prices are expected to be lower than Washington’s, more consumers will go to Oregon to purchase marijuana, giving them a larger revenue than Washington. It’s more logical for consumers to go to Oregon for marijuana because they only charge $145 for an ounce of weed, while Washington charges $500. The cost of marijuana in Washington is so high because they have a limited supply and a high demand for it. Another main reason as to why the price is so high is the taxes they are paying on it (30-40%), so increasing the price of it will allow them to make a larger revenue than just getting my from minimal income. Brian Budz, the co-owner of New Vanserdam’s retail marijuana store is cautious that his business will fail if Oregon legalizes retail marijuana. “If the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay]. Government interventions will also affect the marijuana markets in Oregon because the taxes will be determined on the weight of the marijuana, creating almost equal taxes to Washington’s. The black market is evident in Washington currently because of the high price for marijuana (roughly $500/ounce). Because of this, more consumers are crossing the border into Oregon to purchase marijuana because of the low price, which could cause other problems, such as smuggling and drug trafficking.
ReplyDeleteOregon is stealing many of the business from Washington's pot smokers because of the cheaper prices. The reason why weed is so expensive in Washington is because of the taxes, and the amount of supply that they have. Due to these factors, the average price for an ounce of weed would be roughly 500 dollars, and that's ridiculous. These high prices would not only result in people purchasing cheaper weed from Oregon, but it will also create a black market in Washington so that weed can be bought for cheaper prices. So anybody who has common sense would either go to Oregon or go buy weed illegally if they needed some cheap marijuana.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they are taking away potential business from Washington, since their prices are significantly lower .An ounce of weed in Washington costs about $500, while in Oregon, it would only be about $145. Washington has a limited supply of weed causing demand to be higher and prices to also be much higher than in Oregon.Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].” Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, making the taxes almost equal to Washington’s, if they decide to alleviate some of Washington’s taxes. If marijuana is cheaper in the black market people will buy from them instead.
ReplyDeleteGovernment intervention will affect the marijuana markets in Washington because the price range is 200$ dollars while in Organ it is 145$ not including sales tax this will have a huge impact on government intervention in the marijuana markets in Oregon because they are right next to each other people will go to Oregon.Businesses in Oregon will gain more profit because of the lower prices while Washington is loosing money.Washington will have to decrease there price to gain more consumers.There is already a supply shortage as stated in the article ,effecting taxes in Washington. This leads to the creation of black markets because people feel as though the government implications are useless and people rather pay less to consume illegal goods then pay for it at a higher price.Casing the black markets to continue to gain profit being the legal price is so high.
ReplyDeleteIssues involved with Oregon passing legislation for recreational marijuana include Oregon starving Washington's marijuana market. Since Oregon's marijuana would be cheaper than Washington's people would travel to Oregon to by weed. The cost of marijuana in Washington is a lot grater than the cost in Oregon because Washington has a limited supply and a huge demand. Another reason the price of weed is greater in Washington is because they have a lot more taxes. Government intervention will effect marijuana markets in Washington because "if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay]" government intervention will also greatly effect markets in Oregon. Oregon's taxes would be determined by weight, which would make the taxes almost equal to washington's. Now in Washington there is a black market. The price for one ounce of weed is almost $500 and in black markets prices get cut in half which will soon happen in Oregon if it's marijuana prices are high.
ReplyDeleteWith the legalization of recreational marijuana comes with many government regulations. Washington had legalized medical marijuana in July and the restrictions began. The pricing of legal pot was double of what pot on the streets was and the government had restrictions on where shops were allowed to be and not. Shortages began due to the struggle of setting up pot shops and the plants still had to be grown. All of these regulations held by the Washington government is a recipe for black markets to stay and strive. Now these Washington residents who are purchasing weed are going to be taking a road trip to Oregon due to the fact that Oregon's prices of legal pot are significantly lower. Oregon is one of the few states with no sales tax and that would be a huge boost for the marijuana market as well. The black market in Oregon has a much better chance at decreasing than the one in Washington. So it looks like Oregon will be expecting many more tourists than usual!
ReplyDeleteThe issues involved with Oregon passing legislation for recreational marijuana is if the prices are lower then quantity will increase causing all of Washington’s customers to go to Oregon. They will end up buying it from there instead leading Washington lose lots of money. This would cause a huge problem in the industry since Oregon will be making more income. This will cause more black market because most people will not want to pay a current price when they know they can get it for lower. People love good quality at a cheaper price causing black market for selling marijuana to grow.
ReplyDeleteThe issues involved with Oregon passing legislation for recreational marijuana is that business rate are dropping in Washington because the prices are supposed to be low in comparison to Washington, also because they may be stealing a lot of businesses from Washington. The government intervention will affect the marijuana markets in Washington because there is only a few amount of marijuana retailers and the government has high amount of taxes on it, which made the price got higher. But if they lower the prices on marijuana, it might lower the amount of taxes that the consumers are paying. The government intervention will affect the marijuana markets in Oregon because they can grow as much marijuana as they want and because taxes will be determined on the weight of the marijuana which can create equal amount of taxes to Washington's. This lead to the creation of black markets to sustain because the people will think that the government is useless and they want to pay less for illegal items than pay at a higher price. This makes the black market to have a gain in profit.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is practically the fact that it's stealing business away from Washington. The prices are very low in Oregon when being compared to the prices in Washington. This means that consumers would come flying into Oregon's market being beneficial to them than to Washington. Due to the fact that there is a limited supply and a high demand of weed, it is the result of Washington high price of weed at $500 an ounce. On the other hand in Oregon it's $145 an ounce. Government intervention will greatly affect Washington; “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes consumers will pay" Government intervention would affect the marijuana markets of Oregon because the tax would be based on weight rather than the price of marijuana as it is done in Washington. If marijuana is cheaper in the black market people will buy from them instead. This will allow the black market to earn more of a profit .
ReplyDeleteWashington state entirely taxed marijuana so it costs a large sum of money for both producers and consumers. The state's strict zoning laws make it difficult for entrepreneurs to find a good location to start their business and the limited amount of shops--with high demands of pot--causes a shortage of supply, therefore keeping marijuana at an incredibly high price. Marijuana prices in Oregon will be considerably lower than those of Washington because of the fact that the state doesn't make decisions that will negatively affect the market. Since prices are so high in Washington, people will try to find a cheaper way to get pot which will create a black market. Producers could be smart and buy their supply in Oregon and sell them at a higher price which at the same time is lower than that of Washington.
ReplyDeleteOregon passing legislation for recreational marijuana will cause Washington to lose much of their business. Washington has put these large tax amounts on the purchase on Marijuana in their state, but Oregon's marijuana is much lower in price. The demand in Washington will shift to the left due to the better deal you can get in Oregon. Government intervention would help Washington because the government can regulate the prices and bring back some of the business they would lose with their previous prices. Government intervention in Oregon's marijuana markets would not have a huge impact since their market didn't exist before this. If the government were to intervene in the marijuana market they could equal out the playing field by having a certain set price. The high prices in Washington can increase the Black markets there, while the lower prices in Oregon cause the black markets to be sustainable.
ReplyDeleteIf Oregon ever pass the law for recreational marijuana, the demand for the drugs in Washing will decrease due to its higher prices. However, Oregon, on the other hand, would have an economic advantage due to its cheaper fix. Eventually, the demand for the drugs would increase in Oregon and would cause other residents from Oregon and from neighboring states to flock in to Oregon to buy the drugs at cheap prices. From the Supply and Demand viewpoint, when demand increases, obviously the supply also would increase. For Washington's situation, even though there are a lot of demands for marijuana in the state, there are still some government restrictions of producing the drugs, that would make the prices go higher. In Oregon, since the restrictions for the drugs are differ from that of Washington's, without doubt they would produce more supply since people demand more of marijuana, and even sky high if the law passed. The government's intervention causes Washington's marijuana to be much higher-charged due to its shortage of supplies (how much they can produce), and the producers would have to pay extra money to make up for the losses. If the same intervention applies for Oregon, the situation would be the same, but since the demand remains high, the prices can be a little cheaper compared to Washington. Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].” Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, making the taxes almost equal to those of Washington’s, if some of Washington’s taxes are alleviated. Whenever the price of a high demanded item is sky high, there will be black markets. Not only because the prices are high, it also includes high taxes that will produce more illegal businesses, and the most common is the black market. There are a lot of black markets in Washington because the prices of weed is $500 per ounce, for the illegal business the prices are cut in half, this would attract more customers. Eventually the same thing would happen the same for Oregon if the government's restrictions are the same as Washington's.
ReplyDeleteDue to the high demand and a low supply of weed in Washington, the cost of weed is incredibly high compared to Oregon, which borders Washington. Since Oregon has legalized weed in its state there has been isseus for Washington since the price of weed is so much cheaper in Oregon. the high taxes for weed in Washington are what causes it to be so expensive and this is causing people in Washington to get their weed in bordering states(Oregon). If government intervenes then it will lower taxes in Washington and make Oregon to be taxed by weight as well. This will cause the price of weed in both states to be fairly similar and one state won't be stealing consumers from the other. Since the price in Oregon will go up this makes the black market needed for cheaper weed. In all cases there is going to be a black market on weed and since people are willing to get weed for cheap this can cause problems for the states in general.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they may be stealing business from Washington since their prices are expected to be very low in comparison to Washington.Government intervention will affect marijuana markets in Washington because they won't be able to produce as much weed as they need. There have already been supply shortages and high taxing in Washington. Government intervention will affect marijuana markets in Oregon in a good way, because they don't pay sales tax and the taxes are not very high. Also they can grow as much as they want, if the government was involved chances are they will raise taxes and put a selling cap.There is a huge black market for weed because many consumers are willing to do illegal activity in order to obtain weed at a lower price. The price is significantly lower as of right now in Oregon which will result in many people purchasing from them which results in a black market.
ReplyDeleteBecause of the high demand and a low supply of Marijuana in Washington, the cost of Marijuana is high when compared to Oregon, which is bordering Washington. With Oregon passing legislation for recreational marijuana will cause Washington to lose most of their market. Government intervention can help Washington's market because they can regulate the prices and bring back some of the market they had lost with their previous price; but this will cause Oregon's taxes on Marijuana to be weighted out making the prices similar. In all, there will be a black market on Marijuana and since many people are willing to get Marijuana on the black market this can cause problems for all the states.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they may be stealing business from Washington since their prices are expected to be very low in comparison to Washington. Marijuana in Oregon will be cheaper than Washington, no matter the weight of the weed, this makes it too predictable that people will visit the state just for the herb. The marijuana markets in Washington will likely run out of business, due to the fact that more people will obtain this product from Oregon, where taxes are lower, therefore the price is cheaper.The high prices in Washington will drive people, if they aren't able to get to Oregon, to find their drug through other means. Some people just can’t afford the price of marijuana in Washington, so people who sell it illegally are getting plenty of business.If that is to happen there will be an abundance of black markets selling the drug. Because Washington is selling it at 500 an ounce and Oregon 125 an ounce .this gap will cause for the two to find a state of equilibrium.
ReplyDeleteSince Oregon has cheaper prices for marijuana than Washington it id going to steal away their business. Many consumers would rather travel to Oregon to get weed than stay Washington because the pricing is so high. Due to Washington's supply shortages the will continue to lose customers unless they begin to cultivate their plants quickly. If this law gets passed in Oregon will run out businesses in Washington. The reason for the high prices in Washington for weed is the high tax pricing causing them to lose consumers. In Washington $500 per ounce for weed , and if recreational weed becomes legal than it would be $145 per ounce of weed. If the shortage of supply in Washington gets alleviated and the price goes down it will lower the amount of taxes consumers will pay, possibly leading to an equilibrium. Also leading Oregon to pay tax in weight too.
ReplyDeleteThe issue with Oregon passing the legislation for recreational marijuana is that they will be greatly effecting the business in Washington. Prices in Oregon would be less than half the price in Washington causing people to flock to Oregon, just like what happened in Colorado. In Colorado the price for an ounce of marijuana is $145, while in Washington it is $500. This will cause a black market in Washington so that marijuana can be sold at a price to match Colorado’s. The supply is limited and the demand for marijuana is extremely high in Washington, that’s why the price is so high (no pun intended). But because of Washington’s prices people are leaving to go to Oregon for marijuana at a much cheaper rate. Oregon is going to bring in lots of tourists due to their new found law and their cheap prices.
ReplyDeleteUsing the Laws of Supply and Demand, the issues involved with Oregon passing legislation for recreational marijuana is that the demand for the drugs in Washington will decrease due to its higher prices and prices in Oregon would be less than half the price in Washington causing people to go to Oregon. Government intervention will affect the marijuana markets in Washington because "if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay]". Government intervention will affect the marijuana markets in Oregon because they will be making it much easier for retailers to sell and make a profit. So if Washington lowers the price then eventually there will be an equilibrium. This will lead to the creation of black market in Washington because the prices are too high for anyone to purchase any weed.
ReplyDeleteThis new legalization of marijuana in Oregon grants consumers, from both Oregon and Washington, a new and cheap way of obtaining marijuana for recreational use. The demand for pot has been there, hence the black market, but due to Washington's high prices and a shortage of supply and state taxes on pot: customers are left paying an average tax of 30-40%. Oregon's new market is very likely to lure more customers from bordering states including Washington. The government will likely establish a minimum tax on marijuana and also limit the amount of licenses and stores in the state that are able to sell marijuana. This government intervention is seen in Washington and will most likely be seen in Oregon as well which may increase pot prices but not to the point that they're higher then in Washington in order for Oregon to both attract customers and make a good profit. The probability of Washington losing customers is high, there will likely be competitive pricing between these two states. Black markets will still prosper because even with "cheaper" prices, customers have a preference of not paying taxes & having better access than with restrictions on how many selling licenses and quantity of stores.
ReplyDeleteThe issues involved with Oregon passing legislation for recreational marijuana would be stealing business from Washington. Oregon's prices would be way cheaper than Washington's prices, which would cause people to buy marijuana in Oregon rather than Washington, making Washington's demand to decrease while Oregon's demand would greatly increase. Government intervention will affect the marijuana markets in Washington because, due to the article,“if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].” Government intervention will affect the marijuana markets in Oregon because the tax would be based on weight rather than the price of marijuana as it is done in Washington. This leads to the creation of black markets because if people are not able to get to Oregon all the time every time they want to buy marijuana, then they're obviously gonna buy it off the streets, where they would get it for way cheaper and with less of a hassle .
ReplyDeleteIn Oregon, if the prices are lowered then the quantity will increase and all of Washington’s customers will go to Oregon and buy it from there, this causes Washington to lose tons of money and the weed industry could be closed down in Washington. In Oregon the government intervenes by making it much easier for retailers to sell and make a profit. This will lead to the creation of black market in Washington because the prices are too high for anyone to purchase weed. But they legalized to lower the illegal selling and buying of weed, but by making the prices too high then people will have to go back and sell it through the black market.
ReplyDeleteWith the marijuana passing in Oregon, it will decrease the demand in Washington. The prices in Oregon are much more desirable than Washington so they will make much more money n their supply & demand would both shift right after awhile. The only postive in Washington would be for their black marjet cuz of the similarities that happwned in Colorado. Colorado's price was 145$ n Washington's was 500$.
ReplyDeleteThe issue that the new legislation of marijuana in Oregon will cause is that it will steal away all of the weed buyers in California. Oregon pot prices are expected to be half of California's pot prices. This will cause an equilibrium because Washington will notice how all there weed costumers are going to Oregon and try to match there prices. People are not going to buy expensive weed when they can just cross the border and get the same thing for a cheaper price. Government intervention in Washington will affect the market by putting taxes that are outrages on the marijuana industry. As stated in the article the state taxes pot at every step of the way. Government intervention will affect the market in Oregon wouldn't be as bad because they tax by weight unlike Washington which tax by price. Since prices are so high people will look for other ways to get it for cheap which will create a black market.
ReplyDeleteWashington and Oregon are bordering states. Washington has already legalized the sale and use of recreational marijuana; however, the prices are sky high because of little supply and taxes. If Oregon were to legalize recreational marijuana, Washington would have serious competition because of Oregon's expected low prices, and in turn, Washington would lose lots of business. South Washington residents would travel to Oregon, and some "herbalists" would probably even move there simply because it's a better deal. Oregon's marijuana market would boom. On the other hand, there would be a boom in the black market in North Washington because sellers would respond to the wants of the buyers, lower prices and more product.
ReplyDeleteNew Oregon legislation of marijuana will attract more buyers that typically buy in other states such as California. It will also decrease demand in Washington. Prices in Oregon would be drastically cheaper, and thus, Washington would have to give out more marijuana licenses or face a dramatic loss in income being generated into the government and decline in the weed industry. This is an example of government intervention in Washington in hopes of maintaining more of it's residents. In Oregon however the government can take advantage of the boom in marijuana sales. Adding more taxes would be reasonable, seeing as added taxes would still make it cheaper than in Washington. Both state governments will try to adjust their taxation and incentives for citizens in order to make the most profit. Added stress to the system can create a black market. This is the illegal buying or selling of goods or services. These black markets will be a result of raises in prices. People will look for the cheapest way of attaining what they would in a regular market system. This means buying and selling marijuana at cheaper prices in order to provide an incentive to buyers and draw people from the licensed marijuana sellers. Black markets are usually formed when there are drugs involved especially because they are so high-value to people that they are willing to circumvent laws in order to get as much as they can at a lower price.
ReplyDeleteThe issue involved with Oregon passing legislation is that they are taking away business from Washington. In Washington because there is a low supply on marijuana the prices are high, $500 to be precise. With Oregon's new law recreational marijuana will be sold at $145 per ounce. There is a significant difference in prices. Oregon being right below Washington there will be a huge scale of people coming to Oregon from Washington to buy Marijuana. Government intervention is very must needed. Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes [consumers will pay].” Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, making the taxes almost equal to Washington’s, if they decide to alleviate some of Washington’s taxes. Based on both Oregon and Washington, if the prices will continue to increase and the prices of the black market will remain low, the black market will expand because more consumers will continue to purchase from there. Since the black market isn't taxed, an economic problem may occur.
ReplyDeleteWith the passing legislation for recreational marijuana in Oregon, many issues have arisen. Due to the fact that Oregon and Washington will be the first shared border states to legalize recreational pot, competition has been created. Oregon’s predicted price range is said to be much lower than Washington’s. On a supply and demand curve, supply would automatically go up since there was no production to begin with, which means quantity would go up; demand would automatically go up as well since there was no demand to begin with, however, price is indeterminate.
ReplyDeleteWashington’s marijuana markets will begin to gradually lose business since people who live in Washington can easily cross the state’s borders and head into Oregon to buy cheaper marijuana. The product is legal in both states anyway, so buyers can bring back as much supply as warranted. At this point in time, Washington’s price for marijuana is over $500 per ounce.
Oregon’s marijuana markets will skyrocket since taxes are lower, the price of the product will be lower than Washington’s, and demand will be at its all-time high. If Oregon legislatures pass the legalization of marijuana, an ounce of the product would only cost about $145.
This can lead the creation of black markets all around the country. Oregon’s pricing will be much lower than that of Washington’s which will cause people to buy it for the low price, but then sell it back at a slightly higher price to make a profit; however, that price will still be lower than what you’ll find in the marijuana markets of Washington. Many other states have either denied or not yet passed the legalization of marijuana which will create black markets all across those areas. As long as there is one place that is easily accessible to obtain marijuana, black markets will continue to show up all around the country and even the world in places that have not legalized marijuana or have insanely high prices.
With Oregon legalizing weed in their border they are taking away bussiness from Washington because of the different pricing both states have. With Oregon prices being much lower than Washington leads consumers to want to go buy from Oregon which is right across the border of Washington. The government involving themselves into the weed bussiness in Washington in this case would lower supply(because of such high taxes) which would cause price to rise and quanity to fall. Unlike in Oregon with their low price demand is going to increase which would cause price to drop. Black markets will be able to stay in bussiness because people are going to want their weed but they won't want to pay the high prices or travel across the border to get it. They will buy it underground like they been doing for half the price legal weed is going for.
ReplyDelete-Raymond Tilus
The issues involved with Oregon passing legislation for recreational marijuana are that it could steal business from Washington. Another problem is that policymakers and legislation advocates are trying to figure out how to regulate the drug from state to state. Government intervention will affect the marijuana markets in Washington because due to the article,“if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes consumers will pay.” Government intervention in Oregon will affect the marijuana markets because the taxes would be much cheaper than in Washington. This leads to the creation or sustainability of black markets because if the price of weed is too high, this will sustain the black markets because you can go to your local drug dealer and buy an ounce for much cheaper than you would from a legal marijuana shop.
ReplyDeleteIf Oregon passes the law for recreational use of marijuana then Washington’s marijuana businesses will deeply suffer. Washing tons residents would go to Oregon for a cheaper producer of medical marijuana. This would cause the marijuana supply in Oregon to rise; the price for marijuana would decrease as quantity increases. The price of marijuana in Washington is so high because of government excise tax, every step that it takes to make the drug is taxed, and this caused the price of marijuana in Washington to go over the roof. The price just for one ounce of marijuana can go over $500. The high prices in Washington have caused the demand for marijuana to decrease. In order to reach equilibrium the government must lower their excise tax on marijuana producers. Thanks to government intervention the weed producers cannot produce as much weed that they need. It will be harder for marijuana businesses to compete with the low prices in Oregon. The black market for marijuana will still exist even when the government legalizes the drug. Not a lot of people have the money to pay $145 for a gram of marijuana in Oregon. The consumers want the drug that could fit their price range. There will be black markets that will satisfy that want. If the government wants to reduce the amount black markets in their state , then they need to stop taxing the legal weed market so expensive.
ReplyDeleteAlthough Washington and Oregon are close in proximity, their prices for marijuana are far apart. Washington has a limited supply of marijuana but a strong demand which raises the price and tax. So the price in Washington for marijuana is more expensive then Oregon. Government intervention will affect the marijuana markets in Washington because eventually the people in Oregon will develop their marijuana businesses in Oregon which is pulling business from Washington causing the marijuana markets to fade out. Of course when a good is being restricted but still in high demand people start buying it for cheap and selling it. This creates a black market because now people will buy cheap marijuana from Oregon and sell it in Washington.
ReplyDeleteIf Oregon passes legislation for recreational marijuana, the demand for marijuana in Washington will decrease, do to its higher prices in comparison to the cost of marijuana in Oregon. The price of marijuana is so high in Washington because of supply being limited, which is due to government intervention. In Washington, there is so much taxation involved in the production of marijuana that causes the price to rise. Producers are taxed for growth, and the consumers are paying 30-40% in taxes when they purchase marijuana in a store. The price for one ounce of marijuana can be around $500 in Washington. Competitive pricing in Oregon allows their demand of marijuana to increase due to the price of the product being so much cheaper when compared to the price of it in Washington. Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, so price of marijuana is still considered very high even in Oregon. If taxes and prices continue to rise then there will be black markets. Right now in Washington, there is a black market for weed because the price of weed per ounce is about $500 as stated before. In the black market, the price is cut in half, which appeals more to customers. The same effect will happen in Oregon because the black market will sell the product cheaper than the price of it in Oregon.
ReplyDeleteIf Oregon ever pass the law for recreational marijuana, the demand for the drugs in Washington will go down because of higher prices. But Oregon would hae an economic advantage due to its cheaper fix. Eventually, the demand for the drugs would increase in Oregon and would cause other residents from Oregon and from neighboring states to flock in to Oregon to buy the drugs at cheap prices. when demand increases, obviously the supply also would increase. For Washington's situation, even though there are a lot of demands for marijuana in the state, there are still some government restrictions of producing the drugs, that would make the prices go higher. In Oregon, since the restrictions for the drugs are differ from that of Washington's, without doubt they would produce more supply since people demand more of marijuana, and even sky high if the law passed. The government's intervention causes Washington's marijuana to be much higher-charged due to its shortage of supplies and the producers would have to pay to make up for the losses. If the same thing applies for Oregon, the situation would be the same, but since the demand remains high, the prices can be a little cheaper compared to Washington. Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually goes up and the price comes down, that will also lower the amount of taxes. Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, making the taxes almost equal to those of Washington’s. Whenever the price of a high demanded item is high, there will be black markets. Not only because the prices are high, it also includes high taxes that will produce more illegal businesses, and the most common is the black market. There are a lot of black markets in Washington because the prices of weed is $500 per ounce, for the illegal business the prices are cut in half.
ReplyDeleteThe biggest issue with the possibility of Oregon passing the law for recreational marijuana is that the demand will go way up in Oregon and way down in Washington. This is because Washington has strict regulations on who can open shops that sell marijuana, where they can open, and how many can be opened. Also, in Washington the price of pot is $20 per gram, which the article says ends up being over $500 per ounce. In Oregon, however, they are planning to put the price of an ounce at only $145. A huge reason for this price difference is sales tax- Washington's tax on marijuana comes out to 30-40% while Oregon is one of the few states that do not have sales tax. The fact that Washington and Oregon boarder each other makes it that much easier for consumers to buy their pot from Oregon instead of Washington. I think that this whole ordeal will definitely increase the use of black markets in Washington because of the overpriced drug. People might even purchase it cheap in Oregon and sell it on the black markets in Washington.
ReplyDeleteWith Washington already having legal marijuana the prices are high due to the government issuing certain rules. They only have a certain amount of supply due to them only issuing a certain amount of licenses to produce it. Also they didn't check to see if the people they gave licenses too were able to withhold a business or produce marijuana at all. So a lot of the licensed producers aren't a reliable supply. Since they do not have a reliable supply nor enough supply the price increases since there is demand for it and since the government issues taxes on basically every step in creating marijuana it's too much of a struggle to make. With the prices of marijuana being half of the price of legal marijuana they black market still exists. In Oregon however, the market there will florish if Washington keeps the laws they have. The price in Oregon is dramatically lower than in Washington and there isn't any sales tax on marijuana. Many people will cross the border and keep the industry there with low prices even with demand because of the way marijuana is sold in Washington is not what people want.
ReplyDeleteIf the measure passes in Oregon to legalize marijuana, then the demand will rise up in Oregon, but drastically affect Washigntons'. Since Washington state is controlling how many stores to be open, there is a supply shortage. If prices do increase it will affect all the producers, especially consumers. The government is also taxing from about 30-40 percent, this making it awfully expensive. Due to the high prices, black market will result and people from Washington will cross the border to Oregon and get marijuana at a lower rate. Just as economist Robert Whelan states,“There will definitely be lots of people coming from Washington to Oregon (to buy cannabis),”. Hopefully, the prices can go down so that the taxes in Washington can also decrease.
ReplyDeleteWith the passing legislation for recreational marijuana in Oregon, many issues have arisen. Due to the fact that Oregon and Washington will be the first shared border states to legalize recreational pot, competition has been created. The price of government taxes is so high based off of the amount of income from the marijuana. If prices do increase it all affect all the producers, re specially consumers. The government is also taxing from about 30-40 percent, this makings it awfully expensive. The price in Oregon is dramatically lower than in Washington and there isn't any sales tax on marijuana. The fact that Washington and Oregon boarder each other makes it that each that much easier for consumers to buy. Due to high prices, the black market will result and people from Washington will cross the border to Oregon and get marijuana at a lower rate.
ReplyDeleteIn regards to the supply and demand chart, when legal pot went in sale in the Washington Market, consumers were surprised none the less. The price for a gram was $20, so for an ounce that would sum up to about $500. On the other hand, Washington's black market sold their supply for half of that. So wile Washington is trying to sell their pricey product, the black market is making more money on their lower priced product, causing Washington to lose money. Due to the government's intervention, the affect on the marijuana market in Washington, will only result in a downfall with their high prices, and with Oregon's recreational marijuana costing about $145 for an ounce, its just next door for some consumers in Washington to Oregon, so with the increase in consumers Oregon will have a higher demand and a decrease in supplies. But even if they raise their price to $250 an ounce, they will still have the demands from Washington consumers. This led to the creation of the black market because there products weren't affected by taxes due to not being recorded. Unlike the Washington Market's highly taxed pot.
ReplyDeleteThe biggest issue involved with Oregon passing legislation for recreational marijuana is that they may be stealing business from Washington since their prices are expected to be very low in comparison to Washington. An ounce of weed in Washington costs about $500, but an ounce of weed in Oregon would cost about $145. The prices in Oregon will be much lower because of lower taxes and regulation. Because Washington has a growing cap the producers charge very high to make a profit. Government intervention will affect marijuana markets in Washington because they won't be able to produce as much weed as they need. competitive pricing will take place because Southern Washington residents may enter Oregon to buy marijuana. As for northern Washington, black markets will benefit. Prices of marijuana will remain just cheap enough that they will take customers from the legal market. When Washington realizes that there is a high demand for reasonably priced marijuana, an equilibrium may occur. Some people just can’t afford the price of marijuana in Washington, so people who sell it illegally are getting lots of business. Some sellers may even go to Oregon to buy their weed for low prices and then bring it across the border to Washington and sell it for profit, starting a drug trafficking business. The black market business will deffinately increase because of the super high prices of marijuana in Washington.
ReplyDeleteCARLIE LIBRIZZI
One of the biggest issues with oregon passing the legislation for recreational marijuana is that people that live in washington will head over to oregon and buy marijuana which will cause washington to lose money. Government intervention will affect the marijuana markets in washington because the supply problem. Washington will eventually become allevaited and the price of marijuana will drop. This will lead to the creation of black markets. If black markets continue to sell weed at a low price below the legal market then the black market will continue to gain profit.
ReplyDeleteOregon passing legislation for recreational marijuana is taking away business from Washington. Their prices are lower because they have a larger supply of marijuana than Washington, who has to keep their prices high because of their limited supply. Because people can’t afford the price of marijuana in Washington, others will buy and illegally sell it at a lower price. This can lead to drug trafficking. The black market business will increase because of this.
ReplyDeleteThe main topic of discussion that is the issue iof whether Oregon's legalization of marijuana will market starve Washington's. This will therefore potentially result in a loss of business from Washington which would be harmful in an economic standpoint. Government intervention will affect marijuana markets in Washington because “if the supply problems in Washington eventually get alleviated and the price comes considerably down, that will also lower the amount of taxes .” Government intervention will affect marijuana markets in Oregon because their taxes would be determined by weight, so taxes will be almost equal to Washington’s, if they decide to alleviate some of Washington’s taxes. If taxes and prices are sky-high then there will be black markets. If the black market continues to keep their prices slightly below the legal market, they will continue to profit as well. Oregon will eventually raise their prices to be about the same as in Washington, which in return allows them both to keep their own state customers.
ReplyDeleteThe issues involved with Oregon passing legislation for recreational marijuana are the demand for weed in Washington will shift left while the demand for weed in Oregon will shift right. Oregon is taking away Washington's business, so Washington will need lower their prices drastically.
ReplyDeleteGovernment intervention in Washington affects the marijuana markets by having weed taxes at 30-40 percent, a limit on the number of pot shops allowed to open, and licenses given out to random entrepreneurs who had troubles. With all that government intervention, Washington has unreasonable prices. To fix this, Washington will need to lighten up on the limits and taxes.
Government intervention in Oregon affects the marijuana markets by having taxes be by weight rather than price, cheap prices such as $145 for an ounce of weed while Washington is $500 for an ounce of weed. Also, retailers in Oregon can breathe easily and make profit. Oregon is winning.
This leads to the creation of black markets because the price discrepancy problem would likely only affect southern Washington, since dispensaries in other parts of the state are far from the border. That leaves northern Washington to gear towards the black market so they can bypass the unreasonable prices and taxes.