Question: Question 10 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =120 - 2P, + I +

Question 10 (4 points) Suppose that the demand and supply functions for good x are given as follows: Of =120 - 2P, + I + P, and Of = -30+ Px - 2t+ 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. Suppose also that exogenous variables are given as follows: Income (1) = 450, Price of the related product ( Py ) = 30, tax (t) =24, subsidy (s)=15 and factor prices (f)=36. What are the equilibrium price and output values, respectively? 110, 245 100, 240 240, 100 245, 110

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