The Quantity Q of Apricots Demanded at Price P Is

question 31

Multiple Choice

The quantity q of apricots demanded at price p is given by q = 36 - 4p and the supply schedule by q = 2p. 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 apricots being bought or sold?

• A) 6.67%
• B) 9%
• C) 6%
• D) 10.50%
• E) 12%

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Definitions:

Taxation Depreciation

The allowance for the depreciation of assets that can be deducted from taxable income for tax purposes.

Accounting Depreciation

Accounting depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

After-Tax Consequences

The financial results of an event or transaction taking into account the effects of taxes.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a business.