The Inverse Demand Function for Cantaloupes Is Defined by the Equation

The inverse demand function for cantaloupes is defined by the equation p = 305 - 5q, where q is the number of units sold. The inverse supply function is defined by p = 8 + 4q. A tax of $45 is imposed on suppliers for each unit of cantaloupes that they sell. When the tax is imposed, the quantity of cantaloupes sold falls to

A) 28
B) 33
C) 21.75.
D) 26.
E) 30.50.

Correct Answer:

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