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In a Certain Kingdom, the Demand Function for Rye Bread

question 38

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In a certain kingdom, the demand function for rye bread was q = 381 - 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf. To avoid shortages, he agreed to pay bakers enough of a subsidy for each loaf of bread so as to make supply equal demand. How much would the subsidy per loaf have to be?


Definitions:

Milliliter

A unit of volume in the metric system, equal to one thousandth of a liter, commonly used to measure liquids.

Metric Equivalent

A conversion of measurements into the metric system, which is based on units of ten.

Milliliters

A metric unit of volume equal to one cubic centimeter, used commonly in liquid measurement.

Apothecary Measurement

A historical system of weight and volume units used primarily by pharmacists for the compounding and dispensing of medications.

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