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1. Why do you suppose that people who propose stiffer penalties for violations of laws prohibiting the sale and use of marijuana argue that toughened enforcement would push up the market price of marijuana and significantly reduce its use? (Hint: Tougher penalties push up suppliers’ costs and reduce users’ quantity demanded.)
2. Why do you think that economists interpret the high price elasticity of demand for marijuana by regular users to be consistent with the fact that 90 percent of users do not become habitual users of the drug?
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