Suppose that the demand and supply functions for good x are given as follows: Of =120 -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 happens to the demand for x as price of x rises? 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. Demand for x falls since law of demand holds