In a Certain Kingdom, the Demand Function for Rye Bread

question 33

Multiple Choice

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?

• A)21 zlotys
• B)14 zlotys
• C)8 zlotys
• D)20 zlotys
• E)None of the above.

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Definitions:

Price of Coconuts

This refers to the market value at which coconuts can be bought or sold, influenced by factors such as supply, demand, and geographical location.

Coconut Suppliers

Businesses or individuals that provide coconuts to the market, either through direct sale or distribution channels.

Near Future

A time period that is shortly ahead, typically referring to events that are expected to happen soon.

Decrease

A reduction in the size, quantity, or degree of something, often in response to changing economic conditions or policies.