Question 2 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =240 -2Px + 1 -PV and Q = -30+ Px -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 and supply of x as factor prices (f) rises? Supply shifts to the left while demand stays the same. Both supply and demand shift to the right. O Supply shifts to the right while demand stays the same. No change in Demand and Supply. Page 2 of 26