Many states charge a 10-cent deposit on every can of soda sold.A purchaser pays an extra 10 cents per can and will get his money back by returning the empty can to a store.This policy encourages recycling by
A)increasing the supply of recyclable materials.
B)shifting in the demand curve for canned soda.
C)raising the opportunity cost of discarding empty cans.
D)taxing the production of canned soda.

Question

Quizplus · Accepted Answer

By charging a deposit on every can of soda, the policy raises the opportunity cost of discarding empty cans. This motivates individuals to recycle the cans in order to recover the deposit, thus promoting recycling.

Many States Charge a 10-Cent Deposit on Every Can of Soda