The Demand Function for Orange Juice Is Q = 247

The demand function for orange juice is q = 247 - 8p and the supply function is q = 19 + 4p, where q is the number of units sold per year and p is the price per unit, expressed in dollars. The government decides to support the price of orange juice at a price floor of $27 per unit by buying orange juice and destroying all that it has purchased. How many units must the government destroy per year?

A) 105
B) 104
C) 40
D) 96
E) 101

Correct Answer:

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