Solved

Use the Following to Answer Questions

Question 142

Multiple Choice

Use the following to answer questions: Use the following to answer questions: -(Table: Market for Fried Twinkies) Look at the table Market for Fried Twinkies. Suppose the government decides to reduce fried Twinkie consumption as part of a war on obesity. After careful study, the government decides to impose a quota of 5,000 on production of fried Twinkies this year. What price will producers charge if they obey the quota law? A) $1.20 B) $1.30 C) $1.50 D) The answer cannot be determined with this information.
-(Table: Market for Fried Twinkies) Look at the table Market for Fried Twinkies. Suppose the government decides to reduce fried Twinkie consumption as part of a war on obesity. After careful study, the government decides to impose a quota of 5,000 on production of fried Twinkies this year. What price will producers charge if they obey the quota law?


A) $1.20
B) $1.30
C) $1.50
D) The answer cannot be determined with this information.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q72: Economists in general agree that rent controls

Q137: Use the following to answer questions:<br>Figure: Price

Q139: How does an effective price ceiling affect

Q139: One of the ways rent control is

Q140: Use the following to answer questions:<br>Figure: Supply

Q141: Suppose the government sets a price floor

Q143: An increase in producer surplus would most

Q144: Quantity controls set below the equilibrium quantity

Q145: A minimum price that the government guarantees

Q146: Suppose that a binding price floor is