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How plastic containers and bags create welfare loss

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Reference no: EM132812792

Some Australian state and territory governments have banned or are planning to ban plastic shopping bags due to negative externalities rising from their excessive use.

(a) Describe the externality that arises from plastic containers and bags. What is the best way to avoid or regulate externalities? Discuss.

(b) Draw a graph to illustrate how plastic containers and bags create welfare loss.

Reference no: EM132812792

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