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An economy with just two interdependent markets is described by Q 1 = 800 -20p1 + 30p2 Q51 =-20+ 50p1 -10 p2 Q 2 =
An economy with just two interdependent markets is described by Q 1 = 800 -20p1 + 30p2 Q51 =-20+ 50p1 -10 p2 Q 2 = 100+20p1 - 15p2 Q52 = 620 - 20p1+5p2 where Qu, is quantity demanded in market I, Q5, is quantity supplied in market i, and P; is price in market i (i = 1,2) a. Are these goods substitutes or complements in the eyes of the buyers? Explain your answer briefly. b. Using matrix algebra, find the general equilibrium prices and general equilibrium quantities in this problem *Please note you can upload notes to Blackboard after the exam** For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph v Arial 14px V v v A v TX
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