In accordance with the article, I would assume that demand for marijuana is relatively inelastic. People will buy the same amounts even if prices increase or decrease. However, many opponents of the legislation claim that with the legalization, prices will drop, resulting in more use of the drug.
Since it has now been legalized, will that have an affect on demand? I propose that there are some who have avoided marijuana due to its previously illegal stature, however, now that it is legal more people may decided to take part.
Colorado has seen a small increase in price for legal dispensed marijuana, illegal marijuana is cheaper. I speculate that prices will remain the same or increase much like Colorado's market. After all, there is really no reason for the price to drop, especially when considering the inelastic nature of marijuana.
Also, Colorado has seen increasing tax revenues. The Washington Post outlined some of Colorado's revenue from recreational marijuana use here --- Tax Revenues
What do you think? Will prices drop with the legislation? Will demand increase? How will the tax revenues affect the Alaskan economy?