Math Problem Statement
Solution
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Math Problem Analysis
Mathematical Concepts
Economics
Equilibrium
Supply and Demand
Subsidies
Formulas
Demand function: P = 15 - Q
Supply function: P = 3 + 0.5Q
Subsidy adjustment: P = 3 + 0.5Q - 1.5
Theorems
Equilibrium price and quantity by setting demand equal to supply
Suitable Grade Level
University Economics or Advanced High School
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