Microeconomics Reflection Assignment: Cannabis Supply Shortage

This microeconomics reflection assignment analyzes a current affairs article discussing the cannabis shortage in Canada. The student explores the relationship between supply and demand, highlighting how production restrictions, such as licensing and pesticide-free farming requirements, have contributed to the shortage. The reflection connects the article to economic theory, emphasizing that rising demand should ideally be met with a corresponding increase in supply. The assignment demonstrates an understanding of how legislation affects the production of goods and the impact of supply shortages on businesses. The student uses the article to reinforce their understanding of the business cycle and the roles of demand and supply in the market, supporting their analysis with references from the provided article and other sources.

Microeconomics
Reflection Assignment
Date
Words
Students Name
University

Microeconomics 1
According to Jenkins, following the introduction of the Cannabis Act most Canadian provinces have
experienced a rise in demand for cannabis but there is a supply shortage that could put dealer shops out of business1.
Among the reasons fronted for the Cannabis shortages is soaring demand following legitimization which comes with
production restrictions such as licensing and pesticide free environment.
Based on class discussions and the article, there is a link between demand and supply of goods and services
their effects on businesses. Also, the Article attributes the shortage of cannabis supply to the closure of cannabis
business retailers. According to economic theory, a rise in demand should ideally be met with a rise in supply. If the
supply of goods is not met with demand, there is a shortage as it has been presented in the article. The shortage can
be attributed to production restrictions such as licensing, capital and pesticide-free farming requirements2.
After reading the article, am convinced of my prior assumptions that demand and supply do keep business
people in the business. Also, I am convinced that without rising supply to rising demand, there is a shortage.
Basically, the article has helped me understand the roles of demand and supply in the business cycle. Essentially, a
supply shortage causes loss for business. I had not understood how legislation affects the production of goods up until
now.
1 Bethan,Rose .J, ‘Will canada’s cannabis supply’,[Website]’ https://cannabisnewsbox.com/7320/global/will-canadas-cannabis-
supply-meet-consumer-demand-in-2019/,[Accessed 1 May 2019]
2 Sean,W,5 reasons Canada is facing a Marijuana crisis.,Mortley Fool, [Website] https://www.fool.com/investing/2018/11/18/5-
reasons-canada-is-facing-a-marijuana-shortage.aspx9Accessed 1 May 2019]

Microeconomics 2
Reference list
Jenkins, R.B. (2019). Will Canada’s cannabis supply meet consumer demand in 2019?.Cannabis Newsboys.
Available at https://cannabisnewsbox.com/7320/global/will-canadas-cannabis-supply-meet-consumer-demand-in-
2019/
Williams, S. (2018).5 Reasons Canada is facing a Marijuana shortage. Motley Fool.
https://www.fool.com/investing/2018/11/18/5-reasons-canada-is-facing-a-marijuana-shortage.aspx