Question

Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes. when california voted on legalizing marijuana, which side would you think that california beer distributors were on? what about snack food vendors? why? make sure you think about and define complements and substitutes as you consider these questions.

Answer 1

Your answer would be, Snack food vendors were for the measure while beer vendors were against it. Marijuana; and beers are considered substitutes as they both affect the central nervous system as depressants; similarly affecting to the body; and therefore, be viewed as competitors in the market space; and reducing beer sales; as consumers pursue marijuana. However, snack foods are considered complementary as marijuana use has been shown to enhance sensory inputs; and produce "the munchies" resulting in the user purchasing snack foods thus; elevating snack food sales.

Hope that helps!!!! : )