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.

---

Definitions:

Linear Trend Extrapolation

A forecasting method that uses past data points to predict future values by extending a straight line that best fits the data.

Forecasting Technique

A methodology or set of methods used to predict future aspects of a business or operation, such as sales, trends, or inventory requirements.

Marketing Information

Data collected, analyzed, and used by businesses to make informed decisions about market trends, customer behavior, and competitive strategies.

Secondary Data

Information that has been collected previously by others and is available for use in new research or analysis.