The Inverse Demand Function for Eggs Is P = 84

question 45

Multiple Choice

The inverse demand function for eggs is p = 84 - 9q, where q is the number of cases of eggs. The inverse supply is p = 7 + 2q. In the past, eggs were not taxed, but now a tax of 33 dollars per case has been introduced. What is the effect of the tax on the quantity of eggs supplied?

• A) Quantity drops by 2 cases.
• B) Quantity drops by 3 cases.
• C) Quantity drops by 6 cases.
• D) Quantity drops by 4 cases.
• E) None of the above.

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Definitions:

Alexander Hamilton

A founding father of the United States, first Secretary of the Treasury, and influential in laying the groundwork for the nation's financial system.

James Madison

An American statesman, diplomat, and the fourth President of the United States, known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution.

Federalists

Members of a political group that supported the adoption of the U.S. Constitution and the creation of a strong federal government.

Decentralized Government

A system of governance where power is spread out among various regional, local, or state authorities, instead of being concentrated in a central government.