The Inverse Demand Function for Grapefruit Is Defined by the Equation

question 20

Multiple Choice

The inverse demand function for grapefruit is defined by the equation p = 282 - 9q, where q is the number of units sold.The inverse supply function is defined by p = 7 + 2q.A tax of $22 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)25
• B)14
• C)21
• D)23
• E)24.

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