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.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other factors like income and prices of related goods.

Supply Function

A mathematical representation that shows the relationship between the quantity of a good supplied and its price.

Subsidy

A subsidy is a financial contribution provided by government or another authority to support businesses, markets, or individuals, aiming to promote economic and social policies.