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In the incoming election, Massachusetts voters will have the option to liberalize marijuana in their state. According to news reports, the Massachusetts alcohol industry is contributing money against the legalization of marijuana.

a) Given these news reports, does the Massachusetts alcohol industry consider alcohol and marijuana substitutes or complements? What does the industry believe would happen to the demand for alcohol in Massachusetts with the liberalization of marijuana: shift left, right or remain constant?

b) Given these news reports, which model do you think is most appropriate for the alcohol market in Massachusetts: Monopoly, oligopoly, monopolistic competition or perfect competition? Briefly explain.

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