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%

Question

Quizplus · Accepted Answer

The Answer of 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%

The Quantity Q of Grapefruits Demanded at Price P Is