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 are the loaves of bread. The king made it illegal to sell rye bread at a price higher than 6 zlotys per loaf. To avoid shortages, he agreed to pay bakers a subsidy sufficient for each loaf of bread so that supply equaled demand. 

How much should the bread subsidy?

 

Answer rating: 100% (QA)

To find the subsidy needed to ensure that the supply equals demand we ne... View the full answer