In 1993 the Government Standardized the Way in Which Nutrition

question 277

Multiple Choice

In 1993 the government standardized the way in which nutrition information was presented on the labels of most packaged food products. The figure shows a standardized food label from a package of cookies that I ate at lunch the day I was writing the problems for this problem set. Use the information in the figure to answer the following question. If I paid $0.50 for the package of cookies, how much did each cookie cost?

• A) $0.07
• B) $0.02
• C) $0.75
• D) $0.05
• E) none of these

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Definitions:

Demand Curve

A graphical representation of the demand schedule, showing the relationship between quantity demanded and price.

Equilibrium Quantity

The quantity of a good or service bought and sold at the equilibrium (or market-clearing) price.

Excise Tax

A tax imposed on specific goods, services, or activities, usually with the aim of reducing consumption or generating revenue.

Pretax Level

A financial figure or income amount before any taxes have been deducted.