In a Certain Kingdom, the Demand Function for Rye Bread

question 16

Multiple Choice

In a certain kingdom, the demand function for rye bread was q = 181 - 8p and the supply function was q = 13 + 6p, 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 6 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?

• A)21 zlotys
• B)20 zlotys
• C)14 zlotys.
• D)14 zlotys
• E)None of the above.

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Definitions:

Biomedical Therapy

A branch of treatment that involves medication and medical procedures to treat psychological disorders, based on the principle that mental illnesses are often rooted in biological factors.

Anxiety Disorder

A psychiatric condition characterized by excessive worry, fear, or anxiety that interferes with daily activities.

Biomedical Treatment

Treatments that involve physiological interventions (such as medication, surgery, or other medical procedures) to treat mental disorders.

Drug Therapy

The treatment of diseases and disorders through the administration of drugs and medications.