re: Colorado Sees Marijuana Prices Soar After Legalization

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If the price of legal MJ increases over what the price of illegal MJ has been, why would the price of illegal MJ drop? The druggies will still have a financial incentive to buy from the illegal sources with their existing lower prices.

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Not true, b/c there are external factors built into the markets that don't allow them to operate freely (mainly, the illegality of it).

I may be more willing to spend $30 on a gram legally than I would $20 on the same gram illegally to avoid any legal hassles.

If you view them as separate markets, the demand for illegal weed will decrease, correct? Obviously some folks are moving over to the legal market and willing to pay higher prices for it, thus diminishing demand in the illegal market. There's your price decrease.