Suppose the purchase and sale of marijuana are legalized and the price of marijuana falls.What explains the lower price of marijuana? The minimum wage in year 1 is $1 higher than the equilibrium...

Suppose the purchase and sale of marijuana are legalized and the price of marijuana falls.What explains the

lower price of marijuana?

The minimum wage in year 1 is $1 higher than the

equilibrium wage. In year 2, the minimum wage is

increased so that it is $2 above the equilibrium wage.

We observe that the same number of people are working at the minimum wage in year 2 as in year 1. Does it

follow that an increase in the minimum wage does not

cause some workers to lose their jobs? Explain your

answer.