Recreational cannabis was legalized in Washington State two years ago, and as sales of cannabis have been collecting an impressive amount of tax revenue, the prices for cannabis have also been dropping significantly. In March of 2016, the price of legal cannabis in Washington was $9.32 per gram, according to the Washington Post, who found the information from Washington State’s Liquor and Cannabis Board. The wholesale price of marijuana was $2.99 per gram. In September of 2014, marijuana was selling for about $25 per gram, KUOW News reported. As of August 2015, cannabis prices dropped more than fifty percent to $11 per gram.
When cannabis was first legalized, marijuana prices went up, but despite that, that price rise was only a result of such a high demand and such a low supply, Steve Davenport of the Pardee RAND Graduate School, reported. Since then, prices have been dropping at a rate two percent monthly, he reported to the Post, and they could likely drop twenty-five percent annually.
“It’s just a plant,” reported Professor Jonathan Caulkins, of Carnegie Mellon University, who works with Davenport.
He stated that cannabis could have been so cheap to produce, that they were selling it for nothing.
“There will always be the marijuana equivalent of organically grown specialty crops sold at premium prices to yuppies,” he added, “but at the same time, no-frills generic forms could become cheap enough to give away as a loss leader – the way bars give patrons beer nuts and hotels leave chocolates on your pillow.”
The news out of Washington State is also true of Colorado, the first state to legalize recreational marijuana. In June of 2015, about an eighth of an ounce costs between $30 and $45 compared to the $50-$70 it was selling at the year before.
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