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  3. exercise 41 rewrite the market model 312 in the format...

Question: exercise 41 rewrite the market model 312 in the format...

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Exercise 4.1 Rewrite the market model (3.12) in the format of 4.1
2. with the variables arranged in the following order: Q_d1, Q_s1, Q_d2, Q_s2, P_1, P_2. write out the coefficient matrix, the variable vector, and the constant vector.
4. Rewrite the national-income model (3.23) in the format of (4.1), with U asbtye first variable. Write out the coefficient matrix and the constant vector.

3.12 model

If a solution exists, there will be a set of prices / and corresponding quantities : s that all the n equations in the equ ch ilibrium condition will be simultaneously satisfied. Two-Commodity Market Model To illustrate the problem, let us discuss a simple model in which only two commodities are related to each other. For simplicity, the demand and supply functions of both commodities are assumed to be linear. In parametric terms, such a model can be written as (3.12) where the a and b coefficients pertain to the demand and supply functions of the first com modity and the and & coefficients are assigned to those of the second. We have not both


3.23 model

wo Static for Equilibrium) Anahsis quilibrium in National-Income Analysis as hitherto been restricted to market in various guises linear and nonlinear, one-commodity and multicom general-it, of course, has applications in other areas of economics Even though the discussion of static analysis h ulticommodity, specifi,c as of economics also. As an we may eite the simplest Keynesian national-income model C-a +bY (3.2 23) ue vatiables national income and (nl



4.1 matrices and vectors

where the parameters co and yo appear to the right of the equals sign. In gen of m linear equations in n variables ( format: eral, a system , x.) can also be arranged into such a X1, x2, (4.1), the variable x1 appears only within the leftmost column, and in general the vari- le.rj appears only in the jth column on the left side of the equals sign. The double- parameter symbol aりrepresents the coefficient appearing in the ith equation attached to thejth variable. For example, a21 s the coefficient in the second equation, scripted ched to the variable r. The narameter de which is unattached to any variable, on the

The pictures are only a samplebso you could solved the problems.

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