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%

---

Definitions:

Chemical Industry

A sector that produces and sells chemicals and substances obtained by transforming raw materials through chemical processes.

Economic Efficiency

Economic efficiency occurs when all resources are allocated optimally to serve each individual or entity in the best way while minimizing waste and inefficiency.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate prices.

External Benefit

A benefit that an activity or transaction provides which is not captured by the consumer or producer, benefiting others in society.