Question

Distributors of beer earn some monopoly profits in their local markets but see them slowly erode as substitutes enter the market. Suppose Nebraska has scheduled a vote on the legalization of marijuana. Additionally, suppose that marijuana and beer are substitutes and that the legalization of marijuana would lead to a decrease in the price of marijuana. Given the relationship between marijuana and beer, the legalization of marijuana would lead to _______(a decrease/an increase) in demand for beer. Thus, distributors of beer would likely _______ (support/oppose) the legalization of marijuana.

Answer 1

Decrease, oppose. Because they want there beer to sell not someone’s marijuana

Step-by-step explanation:

Answer 2

Decrease, oppose. Because they want there beer to sell not someone’s marijuana