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Question 5

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Use the following to answer questions: Use the following to answer questions:   -(Table: The Market for Fried Twinkies)  Look at the 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. According to the table, consumers will pay _____ per Twinkie and buy _____ Twinkies after the tax. A)  $1.20; 8,000 B)  $1.30; 7,000 C)  $1.40; 6,000 D)  $1.50; 5,000
-(Table: The Market for Fried Twinkies) Look at the 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. According to the table, consumers will pay _____ per Twinkie and buy _____ Twinkies after the tax.


A) $1.20; 8,000
B) $1.30; 7,000
C) $1.40; 6,000
D) $1.50; 5,000

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