Homework answers / question archive / Drinking straws have been in the news lately as a way to highlight the dangers of excess plastic use

Drinking straws have been in the news lately as a way to highlight the dangers of excess plastic use

Marketing

Share With

Drinking straws have been in the news lately as a way to highlight the dangers of excess plastic use. The plastic in a drinking straw is used for a few minutes, but lasts basically forever, often ending up a landfill or breaking down and adding plastic particles to the water supply. Let's assume the private benefit of one more drinking straw is $1 and the social cost of one more drinking straw is $45. How can we use taxes or subsides to correct this externality?

a. Start a $1 tax on drinking straws

b. Start a $45 tax on drinking straws

c. Start a $1 subsidy on drinking straws

d. Start a $45 subsidy on drinking straws

e. Start a $44 tax on drinking straws

f. Start a $46 tax on drinking straws

g. Start a $44 subsidy on drinking straws

h. Start a $46 subsidy on drinking straws