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ECON205 Tutorial Sheet 1: Q + 3P - P Q Q +4P

This document contains 7 practice problems related to matrices and systems of equations for an economics tutorial. The problems include adding and multiplying matrices, using matrices to calculate sales and profits, determining market equilibrium prices using determinants and Cramer's rule, and using the inverse matrix method to solve a system of equations.

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51 views2 pages

ECON205 Tutorial Sheet 1: Q + 3P - P Q Q +4P

This document contains 7 practice problems related to matrices and systems of equations for an economics tutorial. The problems include adding and multiplying matrices, using matrices to calculate sales and profits, determining market equilibrium prices using determinants and Cramer's rule, and using the inverse matrix method to solve a system of equations.

Uploaded by

Panashe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ECON205 Tutorial Sheet 1

1. Given the matrices A= , B= , C=

Calculate if possible:
a. A+B
b. A+4B
c. AC +B

2. Given the matrices A= , B= , C=

Determine each of the following, if possible:


a. A+C b. c. BC d. e.

3. A fast-food chain has three shops, A, B and C. The average daily sales and profit in each
shop is given in the following table:

UNITS SOLD UNITS PROFIT


Shop A Shop B Shop C SHOP A SHOP B SHOP C
Burgers 800 400 500 20p 40p 33p
Chips 950 600 700 50p 45p 60p
Drinks 500 1200 900 30p 35p 20p
Use matrix multiplication to determine:
a. The profit for each product

4. In a market economy the demand functions for three products are given by:

Qd1 = 114 – 2P1 + 3P2 – P3

Qd2 = 44 + 3P1 – 12P2 + 2P3

Qd3 = 50 – 2P1 +4P2 – 4P3

If the quantities supplied of the three products are Q1 = 100, Q2 = 40 and Q3 = 10, compute
(i) The value of the determinant of the price coefficient matrix
(ii) The market equilibrium price of each product
5. Find numbers and that make M the inverse of N when

and .

6. Using Cramer’s Rule, find the equilibrium prices and quantities where the supply and
demand functions for each good are as follows.

Qd1 = 50 – 2P1 + 5P2 – 3P3 Qs1 = 8P1 – 5

Qd2 = 22 + 7P1 – 2P2 + 5P3 Qs2 = 12P2 – 5

Qd3 = 17 + P1 + 5P2 – 3P3 Qs3 = 4P3 – 1

7. Use the inverse matrix method to solve the given system of equations

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