(Answered) The demand and supply functions of two related goods are

Economics

The demand and supply functions of two related goods are given by

Qd1 = 40 - 6P1 + 2 P2
Qs1 = -40 + 8P1
Qd2 = 250 + 3P1 - 4 P2
Qs2 = -60 + 3P2

(a) Use the equilibrium condition and reduce the system to a 2 by 2 matrix system and solve for equilibrium prices. Then determine the equilibrium quantities.

(b) Write the system in a full 4 by 4 matrix form and solve for the equilibrium prices and quantities.

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