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Suppose that the demand Led supply functions for good x are given as follows: Q. =120-2P, + 1 + P, and Q' = -30 +
Suppose that the demand Led supply functions for good x are given as follows: Q. =120-2P, + 1 + P, and Q' = -30 + P, - 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 firms face, s denotes subsidy and f denotes factor prices. What is the equilibrium price of good x as a function of exogenous variables P. , I, t, s and f? O peqb x = 40 + I+Py+2t-s+2f peqb = 40+ I-Py+2t-s+2f x 3 O peab I-Py+2t-s-2f x = 50 + 3 O peqb = 50 + I+ Py+2t-s+2f 3
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