Read the article Chopsticks: The cutlery conundrum and then consider answers to the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
Identify and explain the external costs and external benefits resulting from the use of disposable wooden chopsticks in China.
Discuss the likely effectiveness of the 5% chopsticks tax on reducing the demand for chopsticks. You should consider the likely value of the price elasticity of demand in your answer.
With the use of appropriate diagrams, assess the likely impact of the chopsticks tax on the equilibrium level of price and output in the market for disposable chopsticks.