(a) The demand and supply functions of two interdependent commodities are given by Q D 1 =...
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(a) The demand and supply functions of two interdependent commodities are given by
QD1 = 40 − 3P1 −P2
QD2 = 30 − 4P1 − 0.5P2
QS1 = −6 + 5P1
QS2 = −5 + 2P2
Show that the equilibrium prices satisfySolve this system by calculating the inverse of the coefficient matrix.
(b) Use Cramer’s rule to find the value of y in the system:
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