In many marijuana-legalized states the price of marijuana has dropped significantly.
The average price per gram is $7.38 in Washington, a 67-percent decrease since legalization took place three years ago, reports The Washington Post.
Steven Davenport of the Pardee Rand Graduate School analyzed retail prices in Washington. To maintain a profitable business model, Davenport hints at the industry finding even more ways to reduce price.
Davenport said, “Some consumers will prefer higher priced brands, but there will always be a market for the brand that can produce adequate qualify cannabis at the cheapest cost.”
This is significant for drug policy in general. Legalization in Washington and other states proves that prohibition is the cause for high cost. One example is heroin, which in a decade, has only seen a 16-percent decrease in price. In some states, legalized marijuana dropped that much in price in just months.
Prohibition drives up prices. Legal substances, like coffee and alcohol, cost less than other substances because they are legal and demand is high.
The marijuana industry, however, is entertaining to witness because we get to watch first hand as new technologies emerge and prices drop considerably within just months.