Canadian CANNAINVESTOR Magazine October 2017 - Page 127

These influences on demand and supply do not move the “price” and “quantity” along the two stated curves directly. If it did what would happen? For example, let’s assume every province sets the age at 19 and has the most accessible distribution system allowed. Demand would increase but due to the supply shortage forcing the price upwards. The price can only be increased to the black market ceiling price or in the case of Ontario the black market price and/or the government desired price of $10. If that price is less than the new market price than shortages will persist and many will exit the market (this includes switching to alcohol or acquiring cannabis from black market sources). This will release pressure on the demand side which in turn will lower the price. You can see how complicated this actually becomes with all of the variables at play and in several jurisdictions – “several moving parts” in constant motion is an understatement! These ongoing shockwaves to demand and supply are just one part of the Ecoforming process.

The chart below could resemble a jurisdiction that is most favourable to those variables that maximize demand. We again assume that the market price is less than the black market price:

When legalization occurs, the “market” will shift as some who are not currently in the market will enter the market (whether just to try it, to

become an ongoing market participant such as for a replacement for alcohol, etc). Over time, the natural market is projected to increase. However, each province/territory has control over distribution within its borders including setting the age limit. In other words, Provinces have control over significant elements affecting demand. For example, the minimum age will necessary affect demand (the higher the minimum age the smaller the potential market) and the distribution network may impact both demand and supply as convenience may play a role and the cost of that network on the end price to consumers.

These influences on demand and supply do not move the “price” and “quantity” along the two stated curves directly. If it did what would happen? For example, let’s assume every province sets the age at 19 and has the most accessible distribution system allowed. Demand would increase but due to the supply shortage forcing the price upwards. The price can only be increased to the black market ceiling price or in the case of Ontario the black market price and/or the government desired price of $10. If that price is less than the new market price than shortages will persist and many will exit the market (this includes switching to alcohol or acquiring cannabis from black market sources). This will release pressure on the demand side which in turn will lower the price. You can see how complicated this actually becomes with all of the variables at play and in several jurisdictions – “several moving parts” in constant motion is an understatement! These ongoing shockwaves to demand and supply are just one part of the Ecoforming process.

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion. Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion. Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion. Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion. r limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

Another limiting factor on supply could be the need to ensure the medical market is supplied first and foremost and that market is expected to continue to increase. There are some who say that will not be the case because patients can switch to recreational products. Reliable, repeatable, and consistent dosing of THC and CBD are less likely in a recreational market. The cost of medical

marijuana qualifies as a

medical expense for taxes and it is likely only a matter of time before we see widespread benefits coverage. Many benefits programs already cover the cost of medical marijuana from the health spending account portion.

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