Canadian marijuana is a lot cheaper than in parts of the U.S. where the drug is legal, according to a report.
Priceonomics released data this week that shows cannabis being 30% cheaper in Canada compared to legal areas of the U.S.
While in the U.S. an eight of an ounce of marijuaan goes for about $40, the price in Canada is $27.90.
Priceonomics analyzed data from Wikileaf to come to their findings.
So the question is, why is it cheaper in Canada? There’s a larger supply.
“There is a much longer history of legalization in Canada and, thus, a larger supply of legal marijuana growers and sellers,” the report noted.
Canada is expecting to make recreational marijuana legal this year. Medical marijuana has been legal since the year 2001.
“With marijuana, as with most things, when the supply is high, the prices are not,” the report said.