The Quantity Q of Grapefruits Demanded at Price P Is

question 9

Multiple Choice

The quantity q of grapefruits demanded at price p is given by q = 30 - 3p and the supply schedule by q = 6p. The government imposes a quantity tax at some rate t, which it collects from buyers. What is the smallest tax rate that will result in no grapefruits being bought or sold?

• A) 10%
• B) 3.33%
• C) 3.67%
• D) 11.50%
• E) 13%

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Definitions:

German Nazism

A totalitarian ideology and movement led by Adolf Hitler and the National Socialist German Workers' Party, emphasizing nationalism, racism, and the leadership principle, and leading to World War II and the Holocaust.

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, leading to underutilized resources.

Personal Choice

The freedom of individuals to make decisions for themselves, based on personal preferences, beliefs, or values, without external coercion or limitation.

Asian Producers

Refers to manufacturers or creators of goods in Asian countries, often noted for their significant role in global supply chains.