Use the Following to Answer Questions

question 159

Multiple Choice

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. 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