Answered
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.
On Jul 23, 2024