Question 15 (4 points) Suppose that the demand and supply functions for good x are given as follows: Q, =120 -2P, + 1 + P, and Of = -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 happens to the demand for x as price of x rises? Demand for x falls since law of demand holds Demand for x stays the same but quantity demanded rises. Demand for x rises since law of demand holds Demand for x stays the same but quantity demanded falls