Use the Following to Answer Question

question 132

Multiple Choice

Use the following to answer 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.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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Definitions:

Grow

Increase in size, amount, or value.

Compounded Monthly

An interest calculation method where interest is added to the principal once a month, affecting the overall interest earned or paid.

GICs

Known as Guaranteed Investment Certificates in Canada, these investments assure a certain rate of return within a predetermined period.

Investor

An individual or organization that allocates capital with the expectation of receiving financial returns.