1 Read the Web page on the Irish tax on carrier bags: a Why does the Irish...
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1 Read the Web page on the Irish tax on carrier bags: a Why does the Irish government tax carrier bags? b Carrier bags appeared to be a free good to supermarket shoppers before the tax. Do you think they are produced at zero cost? c If carrier bags are not produced at zero cost, do you think that the market underproduces or overproduces carrier bags when they appear free to customers? Explain your answer. d How do you think the tax on carriers bags will influence efficiency in the market for carrier bags?
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