We discussed bag taxes briefly in class, but here's an article from the Sun on the current tax in Washington (5 cents) and what's proposed in Baltimore (25 cents). They say a 5 cent tax has cut use by half, and they wonder what a 25 cent tax would do. What do you think the demand curve looks like for plastic bags?
One man interviewed in the article doesn't like the tax, saying, "I don't think we should have to pay for bags at the grocery store." I guess he doesn't realize he's been paying them all along through higher prices for his groceries!
