In what circumstances will a tax make market less efficient

Reference no: EM131919215

Problem

1. In what circumstances will a tax make a market less efficient? In what circumstances will a tax make a market more efficient?

2. The city of Seattle limits each household to one can of free garbage collection per week. There are fees for any extra garbage collected from the curb. Is this policy the most efficient way of reducing waste? Why or why not?

Reference no: EM131919215

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