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.

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Definitions:

Inductive Approach

A method of reasoning that creates general principles from specific observations, often used in scientific and empirical research.

Polygraphs

Devices used in an attempt to detect lies, measuring physiological responses believed to be indicators of truthfulness or deception.

Perspiration

The process of sweating, where the body excretes water and salts through the skin primarily to regulate body temperature.

Heart Rate

The number of times a person's heart beats per minute, indicating cardiovascular health and fitness levels.