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The demand and supply functions for two interdependent commodities are given by QD 1 = 4 0 - 5 P 1 - P 2 QD
The demand and supply functions for two interdependent commodities are given by QDP P
QDPP
QSP
QSP
where QDi, QSi and Pi denote the quantity demanded, quantity supplied and price of good i respectively.
Determine the equilibrium price an
d quantity for this twocommodity model. Are these goods substitutable or complementary?
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