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Suppose that the demand and supply functions for good x are given as follows: Of = 240 - 2P, + I - P, and Q'

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Suppose that the demand and supply functions for good x are given as follows: Of = 240 - 2P, + I - P, and Q' = -30+ P, - 21 +s-2f where Py 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 price of good x as a function of exogenous variables Pp , I, t, s and f? O peab I-Py+2t-s+2f X = 90 + 3 peab = 60 + I-Py+2t-s-2f X 3 O eqb I+ Py+2t-s+2f X = 90+ 3 O peab x = 60 + I+ Py+2t+s+2f 3

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