The Inverse Demand Function for Grapefruit Is Defined by the Equation

question 1

Multiple Choice

The inverse demand function for grapefruit is defined by the equation p = 317 - 6q, where q is the number of units sold.The inverse supply function is defined by p = 5 + 6q.A tax of $48 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)20
• B)18
• C)22
• D)26
• E)24.

---

Definitions:

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties, listed on the balance sheet.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest.

Assets

Assets are resources owned by a company or individual that have economic value and can provide future benefits, like cash, inventory, and equipment.

Increase

An upward movement or growth in value, amount, or any measurable attribute.