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:

Automated Production

involves the use of control systems and machinery to handle tasks in manufacturing with minimal human intervention.

Per-Unit Costs

The cost incurred to produce, manufacture, or acquire a single unit of a product or service.

Decrease

A reduction in size, quantity, or importance of something.

Technological Advancements

Progress in technology which results in new inventions and innovations that can improve the efficiency and productivity of systems.