The demand function for coffee was q = 381 - 3p and the supply function was q = 5 + 7p where p is the price in dollars and q is kg. The government made it illegal to sell coffee for a price above $32 per kg. To avoid shortages, they agreed to pay coffee traders enough of a subsidy for each lkg of coffee so as to make supply equal demand. How much would the subsidy per kg have to be?

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The Answer of The demand function for coffee was q = 381 - 3p and the supply function was q = 5 + 7p where p is the price in dollars and q is kg. The government made it illegal to sell coffee for a price above $32 per kg. To avoid shortages, they agreed to pay coffee traders enough of a subsidy for each lkg of coffee so as to make supply equal demand. How much would the subsidy per kg have to be?

The Demand Function for Coffee Was Q = 381 -