prices if legalized in Cali?

Discussion in 'Marijuana Legalization' started by HunterLives420, Oct 8, 2010.

  1. Hey, new to the forum but not new to bud. lol

    quick question. if pot were legalized in california, that would in turn increase the quantity of marijuana by a vast amount.

    would this affect the price of pot at all?
  2. I've been wondering the same thing and had an idea. since many people won't be buying through a criminal system, the price would be cheaper,but then again there would be taxes. I have no clue what those would be worth but that's what I think.
  3. #3 Kevin08, Oct 8, 2010
    Last edited by a moderator: Oct 8, 2010
    It's the most basic form of economics, supply and demand. Since the legality of it would drive out the black market and decrease overall production, the price will decline. The demand may increase, but just the fact that there is a new market for it will cause a price reduction.
  4. I've seen a couple of articles posted here that quoted economists who said that the price should drop (pre taxed) to between $45-$50/ounce. Figure 10-25% tax, and that puts it around $60 or so.

  5. I think you meant to say "Since the legality of it would drive out the black market and increase overall production, the price will decline". If production decreases, price goes up. If demand increases price goes down.

    We know demand will increase. So production would have to increase MORE than demand for the price to drop, which is what most people think is going to happen.
  6. Wrong. If Supply and Demand even stay the same, there will be a significant reduction in cost.


    Risk/Reward: The risk regarding the legality of MJ will be far lower than it is under the current system, therefore price will drop substantially. Once it goes legal nationwide there will be another drop in risk as you would not have to worry about the FEDS.
  7. #7 Tayanissa, Oct 8, 2010
    Last edited by a moderator: Oct 8, 2010
    According to the law the tax is supposed to be 50 dollars on a Ounce so if you see a Oz for 50 the out the door price is 100

    And i think personally this is going to be like Booze You are going to see pricing like Liquire Regular bag dirt weed will be like your Mohawk Vodka at 25oz to White Widow or your other high end smoke to be 100-200 a Oz = like Nuvo or Chrystaall

    This is From Wiki
    The State Board of Equalization has estimated that imposing a $50 per ounce levy on marijuana sales could generate $1.4 billion a year in new tax revenue, thus generating a large amount of revenue at a time when the state is experiencing financial pressure.
  8. Prices will drop like a stone if weed is legalized in Cali. Great for consumers, bad news for growers and dealers - they'll be wiped out by big corporations who will move in and control production and distribution.
  9. Who Cares about the Dealers they might have to get a job haha i am all for it. And i personally believe this will greatly cut down on the want for other Illegal Drugs the Narcotics because you don't have to go to a dealers who in turn might suggest that you might want to try this White Powder stuff
  10. The demand will stay the same. Only change will be that it comes out of the underground market. Supply which will increase exponentially if weed is legalized. You'll see more "WEEDMARTS" popping all over the state with production facilities so large they will wipe out all current growers and dealers.
  11. Agreed, i see a much lower rehab rate for teenagers, since it will be even harder to get hard drugs, as you actually have to look instead of being told by a street dealer. But i mean, the people against prop 19 say 65% of kids in "treatment", court mandated btw instead of jail time, are for mj offenses.

  12. What makes you say demand will stay the same? It just a guess, but I'm pretty sure demand won't go down :p

    Wouldn't it be logical to assume that currently law-abiding citizens who have experimented with the Herb in the past, but perhaps have quit because of a change in job or location (or a naggy wife) will go back to their long lost friend?

    I know that we may like to believe that legalization won't lead to an increase in marijuana users, but that's a bit foolish. Instead, we should try and realize that this increase in users is not necessarily a bad thing, as it represents choosing to consume a safe, legal substance instead of an unsafe illegal substnace (cocaine, meth) or an unsafe legal substance (alcohol).

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