Suppose the United States chose to legalize the production, and use of marijuana and after doing so, found that the price fell. This would
A. indicate that the demand-side effect was smaller than the supply-side effect.
B. be shockingly counter-intuitive, because there would be no supply-and-demand model that could explain it.
C. indicate that the demand-side effect was greater than the supply-side effect.
D. suggest that the supply curve is vertical.
Answer: A
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