This question appears incomplete. However, to answer correctly, one needs to know the current tax rate on plastic grocery bags.
- Thus, for the sake of this question, the current tax rate in the United States is 22 cents per shopping bag. However, the tax is charged by the suppliers, which is then paid by the final consumers.
- Hence, considering the current rate of 22 cents to a proposed rate of 10 cents, that means tax relief for the customers.
- Hence, in this case, the Demand would increase, as the customers would tend to buy more.
Therefore, the correct is option B "Demand would increase."
Learn more here: https://brainly.com/question/24069122
