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(1) The following equations describe the market for three related commodities: Qd1 = 20 - 3P1 + P2 - P3Qs1 = -5 + 2P1 Qd2

(1) The following equations describe the market for three related commodities:

Qd1 = 20 - 3P1 + P2 - P3Qs1 = -5 + 2P1

Qd2 = 24 + 2P1 - 4P2 + P3Qs2 = -8 + P2

Qd3 = 10 -P1 + P2- 2P3Qs3 = -2 + 3P3

(a)Briefly explain the nature of the relationship among the three commodities.

(b)Find the equilibrium price and equilibrium quantity for each commodity.

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