The Quantity Q of Grapefruits Demanded at Price P Is

question 47

Multiple Choice

The quantity q of grapefruits demanded at price p is given by q = 30 - 3p and the supply schedule by q = 6p.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 grapefruits being bought or sold?

• A)10%
• B)3.33%
• C)3.67%
• D)11.50%
• E)13%

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