Frevious Page Page 23 of 26 Question 23 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =240 -2P + 1 -P, and Of = -30 4 P. - 21 +s - 2f where P. denotes the price of good x, P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. Suppose also that exogenous variables are given as follows: Income (1) - 450, Price of the related product ( P, ) = 30, tax (t) -24. subsidy (s)=15 and factor prices (f)=36. What is the cross price elasticity of demand at the equilibrium? 0.23 and thus products x and y are substitutes. -0.27 and thus products x and y are complements. 0.27 and thus products x and y are substitutes. -0.23 and thus products x and y are complements