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.
This question was answered on: Jul 11, 2017
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