The Inverse Demand Function for Cases of Whiskey Defined by P

question 5

Multiple Choice

The inverse demand function for cases of whiskey defined by p = 160 - 6q, and the inverse supply function is defined by p = 61 + 3q.Originally there was no tax on whiskey.Then the government began to tax suppliers of whiskey $27 for every case they sold.How much did the price paid by consumers rise when the new equilibrium was reached?

• A)It rose by $27.
• B)It rose by $29.
• C)It rose by $18.
• D)It rose by $16.
• E)None of the above.

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Definitions:

Informational Influence

A social influence process where an individual conforms to the opinions or behaviors of a group, believing the group has more accurate information.

Persuasive Arguments

Statements or reasons given with the aim of influencing the beliefs or actions of others through logic and reasoning.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.