Question: Residents of your city are charged a fixed weekly fee
Residents of your city are charged a fixed weekly fee of $6 for refuse collection. They may put out as many cans as they wish. The average household puts out three cans per week. Now, suppose your city changes to a “tag” system. Each can of refuse must have a tag affixed to it. The tags cost $2 each. What effect will the introduction of the tag system have on the total quantity of trash collected?
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