Question 6 (4 points) Suppose that the demand and supply functions for good x are given as follows: Q}: = 240 2PJr + I Py and Q; : 730 + P; 7 2; + s i 2 f where Px denotes the price of good x, Py denotes the price of a related product y, I denotes income, t denotes tax rms face, 5 denotes subsidy and f denotes factor prices. Suppose also that exogenous variables are given as follows: Income (I) = 45 0, Price of the related product (Py) = 30, tax (I) =24, subsidy (s)=15 and factor prices (t)=3 6. What is the optimal pricing strategy of the rm at the equilibrium price in order to maximize revenue? 0 raise price since demand is inelastic O raise price since demand is elastic 0 lower price since demand is inelastic 0 lower price since demand is elastic