Government policies with respect to the recycling
Can you explain how different government policies with respect to the recycling of aluminum and paper might account for these different market outcomes?
Expert
Various government policies could cause these different market outcomes. For example, requiring the use of recycled aluminum in can production could raise its demand; requiring refundable deposits on cans at the time of purchase could give them a value not given to newspapers; giving tax breaks for the use of recycled aluminum and not for recycled newspapers would also encourage demand for aluminum and not for newspapers.
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