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Many cities have experienced a substantial decrease in the amount of garbage being collected after they...

Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a flat tax on each household to a system where the homeowner is charged a fee for each bag or can picked up. Would this have been the result of a change in demand or a change in the quantity demanded? Would you recommend the flat fee or the fee per bag? Why?

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A change in quantity demanded is caused by a change in price and a change in demand is caused as a result of changes in preferences, availability of substitutes and other factors.

In this case, there is a substantial decrease in the amount of garbage being collected after they change from flat tax to a fee for each bag. This means the change is caused due to change in price and this is a change in quantity demanded.

Fee per bag is recommended as it is more benefical than flat fee in decreasing the amount of garbage.

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