Marijuana consists of leaves of a
cannabis plant and is consumed by either smoking hand rolled cigarettes, known
as joints, or in pipes, known as bongs. The market of marijuana use is an ideal
example of market failure. Market failure is when the distribution of goods or
services in a market is inefficient. The use of marijuana is a negative externality
brought on by consumption. A negative externality means that the action of the
good or service imposes a negative effect on the third party. In this case, the
third party would be the people around the marijuana smokers. It is commonly
known that if you inhale second hand smoke from a marijuana smoker, you are likely
to get intoxicated. Also, if people are smoking marijuana illegally and happen
to get caught, everyone in the area has a high chance of being arrested.