How much does supply and demand figure into the retail price?
I've read that the dispensaries can only sell what they grow, and because of the overwhelming demand and relatively few number of dispensaries, the supply will take a few more months to meet the demand. Therefore the current high prices. But as more dispensaries open over time, this will lead to a more balanced supply and demand equation and lower prices.
Am I understanding the situation correctly or am I over-simplifying the cause for the inflated retail prices?
The article I saw about CO indicated that the dispensaries had to grow 70% of their sales. You are correct in that the supply was not ready to meet the demand and thus the gouging is taking place. It will even out once the supply catches up. I'm sure some CO can chime in with better details about the current situation.