How much of the tax is likely to be passed on to consumers


Problem

Starting in 2010, a law requires that people who buy food or alcohol in Washington, D.C., have to pay an extra nickel for every paper or plastic bag the store provides them. Does such a tax affect marginal cost? If so, by how much, and how much of the tax is likely to be passed on to consumers?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How much of the tax is likely to be passed on to consumers
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