The Inverse Demand Function for Grapefruit Is Defined by the Equation

question 17

Multiple Choice

The inverse demand function for grapefruit is defined by the equation p = 145 - 6q, where q is the number of units sold.The inverse supply function is defined by p = 5 + 4q.A tax of $20 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

• A)9
• B)10
• C)14
• D)12
• E)13.

---

Definitions:

Domestic Producers

Companies or individuals within a country that manufacture goods or offer services domestically.

Per-unit Tariff

A type of tax imposed on each unit of imported goods, raising the cost of these goods to the importer.

Per-unit Revenue

The amount of income that is generated for each unit of goods or services sold.

Infant Industry Argument

A protectionist stance arguing that emerging domestic industries should be shielded from foreign competition until they become competitive globally.