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Given the demand and supply functions for three interdependent commodities. Qd 1 = 65 - P 1 + 2P 2 - 3P 3 ; Qs
Given the demand and supply functions for three interdependent commodities.
Qd1= 65 - P1+ 2P2- 3P3;Qs1= 2P1- 10
Qd2= 60 - P1- P2+ 2P3;Qs2= -20 + P2
Qd3= 40 - 2P1+ 2P2- P3;Qs3= 3P3- 10
Determine the equilibrium prices and quantities for the three commodity Market model. Then compute the price and cross elasticity of demand for the second market and interpret the coefficients.
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