Consider a two-commodity market. When the unit prices of the products are P1 and P2, the...

Consider a two-commodity market. When the unit prices of the products are P₁ and P₂, the quantities demanded, D₁ and D₂, and the quantities supplied, S₁ and S₂, are given by

a. What is the relationship between the two commodities? Do they compete, as do Volvos and BMWs, or do they complement one another, as do shirts and ties?

b. Find the equilibrium prices (i.e., the prices for which supply equals demand), for both products.