(Table: The Market for Fried Twinkies) Use Table: The Market for Fried Twinkies.The government decides to tax fried Twinkies at a rate of $0.30 per Twinkie and collect that tax from the producers.After paying the tax,producers will receive _ per Twinkie,and they will sell _ Twinkies after the tax.

A) $1.10;3,000
B) $1.20;5,000
C) $1.30;7,000
D) $1.50;5,000

Question

(Table: The Market for Fried Twinkies) Use Table: The Market for Fried Twinkies.The government decides to tax fried Twinkies at a rate of $0.30 per Twinkie and collect that tax from the producers.After paying the tax,producers will receive _____ per Twinkie,and they will sell _____ Twinkies after the tax.

A) $1.10;3,000
B) $1.20;5,000
C) $1.30;7,000
D) $1.50;5,000

Shawna Mclean · Accepted Answer

Final Answer : B, Explanation :  The tax reduces the price producers receive by $0.30. If the market price is $1.50, producers receive $1.20. The quantity sold at this price is 5,000 Twinkies.

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