The Inverse Demand Function for Eggs Is P = 125

question 2

Multiple Choice

The inverse demand function for eggs is p = 125 - 6q, where q is the number of cases of eggs. The inverse supply is p = 5 + 6q. In the past, eggs were not taxed, but now a tax of 72 dollars per case has been introduced. What is the effect of the tax on the quantity of eggs supplied?

• A) Quantity drops by 7 cases.
• B) Quantity drops by 5 cases.
• C) Quantity drops by 6 cases.
• D) Quantity drops by 12 cases.
• E) None of the above.

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Definitions:

Inhibition

The process of restraining or decreasing the likelihood of a behavior or action, often used in the context of neurological and psychological responses.

Impulsive Behavior

Actions performed without forethought or consideration of the consequences, often driven by immediate desires or emotions.

Depressant Effects

The slowing down of brain and body functions caused by certain substances or drugs.

Nerve Impulses

Electrical signals that travel along neurons, conveying information throughout the nervous system.