Question: The demand and supply functions for two interdependent commodities are given QD 1 = 4 0 - 5 P 1 - P 2 QD 2

The demand and supply functions for two interdependent commodities are given
QD1=40-5P1- P2
QD2=50-2P1-4P2
QS1=-3+4P1
QS2=-7+3P2
where QDi, QSi and Pi denote the quantity demanded, quantity supplied and price of good i, respectively. Determine the equilibrium price and quantity for this two-commodity model. Are these goods substitutable or complementary?

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