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Imposes waste dumping tax on the steel company

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La Ronge Valley Steel produces steel in Northern Saskatchewan. During production, the steel firm dumps its waste in the precious La Ronge Lake. The citizens of La Ronge petitioned the Ministry of Environment requiring La Ronge Valley Steel to treat its waste or stop production.

a) If the Ministry of Environment imposes waste dumping tax on the steel company, show the effect of the demand and supply of steel;

b) If the Ministry of Environment mandates treatment of waste before dumping, show theeffect of the demand and supply of steel;

c) Supposing the options in 2a and 2b fail and Citizens of La Ronge do not have property rights, explain a private solution.

d) Supposing the options in 2a and 2b fail and Citizens of La Ronge have property rights,explain a private solution.

Reference no: EM132199003

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