Question

If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would _________ and the price would ________ if the supply of marijuana increased by _______ than the demand for marijuana increased as a result of the legalization. Group of answer choices rise; rise; more fall; rise; more rise; fall; more rise; rise; less none of the above

Answer 1

Rise, rise, less

Step-by-step explanation:

If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would rise and the price would rise if the supply of marijuana increased by less than the demand for marijuana increased as a result of the legalization.

Due to the legalization, the demand for marijuana will increase and according to the law of demand and supply, this will result in an increase in price if the supply of marijuana is not sufficient enough to meet the surge in demand.