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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Definitions:

Amygdala

A part of the brain's limbic system involved in emotion regulation, especially fear and the processing of emotional memories.

Galvanic Skin Response

Galvanic Skin Response is a method of measuring the electrical resistance of the skin, which varies with its moisture level; often used to gauge emotional arousal.

Autonomic Arousal

The physical response of the autonomic nervous system to stimuli, which can include increased heart rate, sweating, and other involuntary actions as a result of emotions such as fear or excitement.

Autonomic Arousal

The activation of the autonomic nervous system, which controls physiological responses not under voluntary control, such as heart rate and digestion.