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(Solution) - A In July 2008 Seattle imposed a tax of 20

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a. In July 2008, Seattle imposed a tax of 20¢ per bag from grocery, drug, and convenience stores. Explain the effects of Seattle?s policy on the use of plastic bags.
b. Draw a graph to illustrate Seattle?s policy and show the change in the deadweight loss that arises from this policy.
Thin plastic shopping bags aren?t biodegradable. Americans use about 110 billion bags a year. In 2007, San Francisco required large retailers to offer only compostable or reusable bags. In all, 28 U.S. cities have proposed laws restricting the use of plastic bags.

 







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This question was answered on: Jul 11, 2017

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