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