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.