The Quantity Q of Apricots Demanded at Price P Is

question 28

Multiple Choice

The quantity q of apricots demanded at price p is given by q = 36 - 4p and the supply schedule by q = 2p.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 apricots being bought or sold?

• A)6.67%
• B)9%
• C)6%
• D)10.50%
• E)12%

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