The Inverse Demand Function for Cantaloupes Is Defined by the Equation

question 15

Multiple Choice

The inverse demand function for cantaloupes is defined by the equation p = 305 - 5q, where q is the number of units sold.The inverse supply function is defined by p = 8 + 4q.A tax of $45 is imposed on suppliers for each unit of cantaloupes that they sell.When the tax is imposed, the quantity of cantaloupes sold falls to

• A)28.
• B)33.
• C)21.75.
• D)26.
• E)30.50.

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Definitions:

Marketable Debt Securities

Investments in bonds or other debt securities that are available for sale before their maturity date.

Idle Cash

Refers to the money that a company has not invested or used in any way to earn more income.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, by reporting these profits proportional to their ownership percentage.