Graph 1. Supply and Demand of Good Based on Municipal Stormwater Tax Solution 1: Municipal Stormwater Tax Pigouvian Tax on products that are common contaminants such as lawn fertilizer, motor oil, and road salt SMC = PMC+ EMC - Disincentivizes purchasing stormwater pollutants - Reduces stormwater contamination PMC Considerations: - Tax can become regressive and impose harsh burden on lower income populations EMC MB = D Q(soc) Q(p) Quantity of Good Price of Good
Graph 1. Supply and Demand of Good Based on Municipal Stormwater Tax Solution 1: Municipal Stormwater Tax Pigouvian Tax on products that are common contaminants such as lawn fertilizer, motor oil, and road salt SMC = PMC+ EMC - Disincentivizes purchasing stormwater pollutants - Reduces stormwater contamination PMC Considerations: - Tax can become regressive and impose harsh burden on lower income populations EMC MB = D Q(soc) Q(p) Quantity of Good Price of Good
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 1PA
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