Multiple Choice

A national government is concerned about the environmental impact of single-use plastic bags from grocery stores. It is considering two different approaches to reduce their use: (1) completely banning the provision of these bags to customers, or (2) implementing a small fee for each bag a customer uses. Which of the following statements best analyzes the fundamental difference between these two policy approaches in terms of their effect on the market?

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Updated 2025-08-25

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