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To reduce the growing impact of disposable diapers on our country's rapidly filling landfills, the government is considering two possible policies: a) Impose a price

To reduce the growing impact of disposable diapers on our country's rapidly filling landfills, the government is considering two possible policies: a) Impose a price floor at a price 10 % higher than the current market price for disposable diapers. b) Tax the disposable diaper manufactures 10 % of the current market price for every disposable diaper manufactured.

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Introduction to Behavioral Economics

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