Dear Economist: Why is a bag of weed always $10 (man)?

I have been a client of weed dealers in North America since the mid-1980s and no matter who the vendor, the price has remained $10 a gramme. I don’t think anything in 25 years has stayed fixed in price like weed has.

Dealers might have some power to increase prices, as it’s illegal, and there are some significant barriers to entry, such as getting arrested. But if I don’t like the prices, it’s pretty easy to grow some on my own, because it “grows like a weed”, even if it might not be as good as the dealer’s Cannabis sativa.

So how did we end up at $10 a gramme?


P.S. I meant to email this sooner, but was pretty baked and forgot to hit send …

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Tim, also known as the Undercover Economist, writes about the economics of everyday life.