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Question 3 (4 points) Suppose that the demand and supply functions for good it are given as follows: Q: = 600 23,, I + P},
Question 3 (4 points) Suppose that the demand and supply functions for good it are given as follows: Q: = 600 23,, I + P}, and Q; : Br 21' + 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 rms face, s denotes subsidy and f denotes factor prices. Suppose also that exogenous variables are given as follows: Income (I) = 30, Price of the related product (Py) = 30, tax (I) =24, subsidy (s)=15 and factor prices (1)=36. What is the optimal price of the firm that maximizes revenue
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