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Question 25 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =120 -2P, + I + P,
Question 25 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =120 -2P, + I + 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. What is the equilibrium quantity of x as a function of exogenous variables P, , I, t, s and f? neqb - 20 4 I+Py-At+2s-4f 3 neqb - 40 4 Py-At+2s-4f x 3 Oneab - 40 + I+Py-4t+2s-4f x 3 O oeab = 20+ I+Py+4t+2s-4f 3
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