The Inverse Demand Function for Lemons Is Defined by the Equation

question 19

Multiple Choice

The inverse demand function for lemons is defined by the equation p = 120 - 11q, where q is the number of crates that are sold.The inverse supply function is defined by p = 8 + 3q.In the past there was no tax on lemons but now a tax of $84 per crate has been imposed.What are the quantities produced before and after the tax was imposed?

• A)4 crates before and 3 crates after.
• B)8 crates before and 2 crates after.
• C)16 crates before and 5 crates after
• D)16 crates before and 5 crates after.
• E)None of the above.

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Definitions:

Anterograde Amnesia

A condition where an individual is unable to form new memories following the onset of an amnesia-causing event, though long-term memories from before the event may remain intact.

Working Memory

A system for temporarily holding and manipulating information necessary for cognitive tasks such as learning, reasoning, and comprehension.

Mnemonics

Memory aids, often involving patterns or associations, such as phrases or rhymes, that facilitate the recall of information.

Peg Methods

Mnemonic techniques for memory enhancement in which items to be remembered are associated with a list of peg words known in a specific order.