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The demand functions of two related commodities are given by Q1 = 360 6P1 + P2, Q2 = 600 + 7P1 12P2, where P1 and
The demand functions of two related commodities are given by Q1 = 360 6P1 + P2, Q2 = 600 + 7P1 12P2, where P1 and P2 are the corresponding prices of the two commodities. i. Analyse whether the two commodities act as substitutes or complements in the market. [20% of marks for this question]
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