Question: 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- 3P_3;Qs₁= 2P₁- 10

Qd₂= 60 - P₁- P₂+ 2P_3;Qs₂= -20 + P₂

Qd₃= 40 - 2P₁+ 2P₂- P_3;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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