Explain the possible impacts of legalization on the market f

Explain the possible impacts of legalization on the market for currently illicit drugs. In your explanation, address the potential increase or decrease in prices, how demand will be affected and other possible social costs / benefits.

Solution

The prices will decrease since supply will rise with respect to demand. This is because it is now legal to grow or produce illicit drugs. Demand will increase as people know consuming the illicit drugs is not unlawful. The crime will decrease as per some studies particularly drug related crime.,there will be increase in homeless population. Studies have shown increase in population but children may have some problems, hospital visits will increase, productivity will fall and so will health, education status etc.