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Let the market number 1 be the market of bread. From these equations below: Qdi = Q.1 Qd = 7 - P1 - P2 Qs1
Let the market number "1" be the market of bread. From these equations below: Qdi = Q.1 Qd = 7 - P1 - P2 Qs1 = -1+ P Qd2 = Q.2 Qd2 = 6 - Pi - P2 Qs2 = -1+ P2 The values of Pi, P7, Qi, and Q; at the equilibriun in this two-commodity market model are respectively O 9. 10,5, and 8 O 4, 7, 2, and 3 O 1, 4, 2, and 7 3,2,2, and 1 Question 2 4 Using the information in Question 1, it is possible to argue that these goods are: Substitute because when P2 increases Qd1 increases and when P1 increases Qd2 increases. Complementary because when P2 increases Qd1 increases and when P1 increases Qd2 increases. Complementary because when P2 increases Qd1 decreases and when P1 increases Qd2 decreases. O Substitute because when P2 increases Qd1 decreases and when P1 increases Qd2 decreases
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