Mathematical Model of Equilibrium Prices and Quantities for Four Interdependent Goods in a Commodity Market

Abstract

                                                       Abstract

Isolated market where quantity demanded and quantity supplied are functions of that commodity alone hardly occur in our present day market. Every commodity now has two or more substitutes thereby making the adjustment of price easy. In this research work, we developed a model for four interdepended goods in a commodity market. The equilibrium price for each of the commodity were derived. Also derived, were the equilibrium quantities. A numerical example to test the model was also given. At the various price derived from the model, equilibrium for the four commodities were obtained. Having a good knowledge of the equilibrium quantity at existing market price will help producers to produce exactly the quantity needed by consumers thereby avoiding wastage of goods.