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MULLIVII / IT PUBLILO Suppose that the demand and supply functions for good x are given as follows: Q. =120 -2P, + 1 + P,

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MULLIVII / IT PUBLILO Suppose that the demand and supply functions for good x are given as follows: Q. =120 -2P, + 1 + P, and Q' - -30+ P. - 2t+ s- 2f where Px 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. What is the nature of good x? O aQa It is an inferior good since = -10 aPx It is a normal good since =1> 0 al

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