Among the 13 states that will soon have marijuana related votes on the ballot, Florida will decide what to do about medical marijuana and California will consider recreational cannabis.
Where are we going? To how legalization affects price.
Shown in dark blue, marijuana use, sales and production are currently legal in Colorado, Washington and Oregon and will soon be in Alaska. Elsewhere, pot use is more limited or prohibited.
As you can see below, almost 70% of the demand for marijuana comes from approximately 30% of its users.
Colorado’s Demand for Marijuana From Users 21 and Older
Price is down in Colorado.
- A one ounce sale in June 2014 averaged $300-$400.
- In June 2015, it was $250-$300.
- Now, the price ranges from $241.91 for “high quality” to $196.26 for medium.
Similarly, the price plunged in Washington:
Our Bottom Line: Supply and Demand
Our sources: Once you start to look, you discover marijuana articles everywhere. The Marijuana Policy Project has a host of articles while Vox did one of its series of answer cards on pot. Meanwhile, the Marijuana Business Daily detailed the upcoming votes, the Washington Post Wonkblog, Westword and Convergex discussed post-legalization price declines, and Brookings did a good paper on big marijuana.