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1. (20 points) Three goods are related in consumption: good 1 and good 2 are gross substitutes of one another, as are goods 2 and

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1. (20 points) Three goods are related in consumption: good 1 and good 2 are gross substitutes of one another, as are goods 2 and 3, while goods 1 and 3 are gross complements of one another- 011 the supply side, the goods are unrelated. Market demand and supply for the goods looks as follows. Market 1: D2122pl+p2p3;S=9+pl. MarketZ: D210p2+p]+p3;S=3+p2. Market 3: D=8p3p1+p2;S=6+p3. a) Find the general equilibrium using matrix inversion- b) Find the general equilibrium using Cramer's rule

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