4. The St Lawrence County legislature needs some cash and has imposed a $3.00 tax on all Hostess Twinkies sold in the county. Because we eat a collective total of 10,000 Twinkies a month here, they expect to raise $30,000 a month in tax revenues. Are they likely to raise this amount? Explain why or why not, using the concepts of supply and demand and taxation, What general economic effect will they get by imposing this tax?

4. The St Lawrence County legislature needs some cash and has imposed a $3.00 tax on all Hostess Twinkies sold in the county. Because we eat a collective total of 10,000 Twinkies a month here, they expect to raise $30,000 a month in tax revenues. Are they likely to raise this amount? Explain why or why not, using the concepts of supply and demand and taxation, What general economic effect will they get by imposing this tax?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 7PA

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