Given below are the demand and supply functions for three interdependent commodities. Qd1 = 110 – 4P1 + 3P2 – 4P3 ; Qs1 = 2P1 – 20 Qd2 = 46 + 2P1 – 4P2 + 4P3 ; Qs2 = –14 + 2P2 Qd3 = 20 – P1 + 4P2 –...

Given below are the demand and supply functions for three interdependent commodities.
Qd1 = 110 – 4P1 + 3P2 – 4P3 ; Qs1 = 2P1 – 20
Qd2 = 46 + 2P1 – 4P2 + 4P3 ; Qs2 = –14 + 2P2
Qd3 = 20 – P1 + 4P2 – 2P3 ; Qs3 = 2P3 – 10
Determine the equilibrium prices and quantities for the three commodity Market model. Then compute the
price and cross elasticities of demand for the third market and interpret their coefficients.