The Inverse Demand Function for Cases of Whiskey Defined by P

question 27

Multiple Choice

The inverse demand function for cases of whiskey defined by p = 186 - 6q, and the inverse supply function is defined by p = 90 + 2q. Originally there was no tax on whiskey. Then the government began to tax suppliers of whiskey $32 for every case they sold. How much did the price paid by consumers rise when the new equilibrium was reached?

• A) It rose by $32.
• B) It rose by $24.
• C) It rose by $22.
• D) It rose by $34.
• E) None of the above.

---

Definitions:

Sexual Partner

An individual with whom another individual engages in sexual activity.

Condoms

Barrier devices used during sexual intercourse to reduce the probability of pregnancy and the transmission of sexually transmitted infections (STIs).

HIV Infections

A condition caused by the human immunodeficiency virus, which attacks the immune system and can lead to AIDS if not treated.

Herpes Infections

Viral diseases caused by herpes simplex viruses, including oral and genital herpes.