MicroEconomic – The Economics of Supply and Demand

(a) This year the weather smiled on us, and we made a goodcrop, said a wheat farmer in Manitoba. But just as we made a good crop, theeconomic situation changed. This quotation brings to mind the saying, If you are a farmer, the weatheris always bad. Using economic theory, how would you explain thatthis saying might be true? What can you say about the elasticity of demand forwheat and what do you suppose happens to the farmers total revenue if there isa bumper crop?

(b) Along with your textbook reading, review the relatedvideos and article for a background on Canadas marijuana legalization, thenrespond to the following questions:
In your own words, discuss any positive or negative economic after-effectsmentioned in the article or videos. Do you see any other economic effects notmentioned or might occur in the longer period? Which ones concern you and why?What major changes do you see happening with the demand and supply of thecannabis market in the long run?
CBC News: The National. (2015, October 26). How marijuanalegalization could change Canada [Video]. YouTube. 
CBC News. (2018, October 17). Canadians celebrate legal weed[Video]. YouTube. https://www.youtube.com/watch?v=T9N3kufjmic
MSNBC. (2018, October 17). What Canada’s marijuanalegalization means for the U.S. | Velshi & Ruhle | MSNBC [Video]. YouTube.
Shingler, B., & Bernstien, J. (2015). How legalizedmarijuana could change Canadian cities. CBC. https://www.cbc.ca/news/canada/montreal/legalized-marijuana-justin-trudeau-cities-1.3282370