Price Theory: Can Canada’s Cannabis Law Defeat the Law of Supply and Demand?

This article is featured full on the Leafly website.

“Canadian Prime Minister Justin Trudeau unveiled the government’s proposed tax rate consumers will pay when Canadian provinces start selling adult-use cannabis sale next July. On products retailing for ten dollars or less per gram, the feds will charge a flat dollar (80 cents US) per gram; for products priced at more than ten dollars a gram, the tax will be 10 percent.

$10-dollar price is in line with what government policy analysts hope is the public-health sweet spot: high enough to discourage underage use or adult abuse of cannabis, yet low enough to, as Trudeau himself put it, “remove the black market from accessing the billions of dollars of profits that they do every year off of this.”

There’s only one problem: Canada’s legal cannabis market won’t be able to hit that sweet spot.

To read the full article on Leafly please click here.

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