The Quantity Q of Apricots Demanded at Price P Is

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%