Solved

The Inverse Demand Function for Eggs Is P = 84

Question 9

Multiple Choice

The inverse demand function for eggs is p = 84 - 9q, where q is the number of cases of eggs.The inverse supply is p = 7 + 2q.In the past, eggs were not taxed, but now a tax of 33 dollars per case has been introduced.What is the effect of the tax on the quantity of eggs supplied?


A) Quantity drops by 2 cases.
B) Quantity drops by 3 cases.
C) Quantity drops by 6 cases.
D) Quantity drops by 4 cases.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions