Question: Given below are the demand and supply functions for three interdependent commodities forming a three-commodity market model. Qd1= 90 - 2P1+ 3P2- 5P3 ;Qs1= P1-

Given below are the demand and supply functions for three interdependent commodities forming a three-commodity market model.

Qd1= 90 - 2P1+ 3P2- 5P3 ;Qs1= P1- 10

Qd2= 36 + 3P1- 3P2+ 2P3 ;Qs2= -14 + P2

Qd3= 45 - 3P1+ 3P2- 3P3 ;Qs3= P3- 20

a. Determine the equilibrium prices and quantities for the three commodity Market model.

b. Compute the price and cross elasticities of demand for all three markets and interpret their coefficients.

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