Chapter1.

MatrixAlgebra

1.1 Introduction
1.1.1 Matrix Operations
1.1.2 Special Matrices
1.1.3 Determinants
1.2 Matrix Inversion
1.3 Partitioned Matrices
1.4 Rank of a Matrix and Linear Independence
1.5 Vectors and Vector Spaces
1.6 Powers and Trace of a Square Matrix
Chapter 2. Systems of Linear Equations

2.1 Matrix Representation of Linear Equations

2.2 Solving Systems of Linear Equations
2.2.1 Gauss-Jordan Method
2.2.2 Inverse Method
2.2.3 Cramer’s Rule
2.3 Homogeneous Systems of Linear Equations
2.4 Economic Applications
Chapter3.Special Determinants &Matrices in Economics

1.1 Introduction
1.2 The Jacobean Determinant
1.3 The Hessian Determinant
1.4 Eigen vectors and Eigen values
1.5 Quadratic Forms
Chapter4.INPUT-OUTPUT ANALYSIS AND LINEAR PROGRAMMING
4.1 Input-Output Model (Leontief Model)
4.1.1 Introduction
4.1.2 Assumptions of Input Output Models
4.1.3 The Open Model
4.1.4 The Closed Model
4.2 Linear Programming
4.2.1 Introduction
4.2.2 Formulating Linear Programming Problems
4.2.3 Solving Linear Programming Problems
4.2.3.1 The Graphic Method
4.2.3.2 The Simplex Method
4.3 The Duality Theorem

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 Course content (new curriculum)
Chapter 1: Linear Differential and Difference Equations
1.1. Definition and Concept
1.2. First order-Linear differential equations
1.3. First -Order Linear Difference Equations
1.4. Economics Applications of Linear Differential and Difference equations
Chapter 2: Matrix
1.5. Definition
1.6. Types of Matrix
1.7. Algebra of Matrix
1.7.1. Addition of Matrices
1.7.2. Multiplication of Matrices
1.7.3. Power of square Matrix
1.7.4. Trace of Square Matrix
1.8. Determinant of Matrix
1.9. Matrix inverse
1.10. Partition of Matrix
1.11. Rank of Matrix
1.12. Vectors
1.13. Vector space
1.14. Linear dependence and Linear independent vectors
Chapter 3: Systems of Linear Equations
1.15. Definition
1.16. Matrix representation of Linear Equations
1.17. Solutions of Systems of Linear Equations
1.17.1. Solving systems of Linear equations by
1.17.1.1. Gaussian Elimination
1.17.1.2. Gaussian Jordan
1.17.1.3. Inverse Method
1.17.1.4. Cramer’s rule
1.18. Homogenous systems of Linear equations
1.18.1. Solution of Homogenous of systems of Linear equations

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 1.19. Economics Application.
Chapter 4: Special determinants &Matrices in Economics
1.20. The Jacobean Matrix and Jacobean Determinant
1.21. The Hessian Matrix and Hessian Determinant
1.22. Quadratic Forms
1.23. Eigen values and Eigen Vectors
Chapter 5: INPUT-OUTPUT ANALYSIS AND LINEAR PROGRAMMING

1.24. Input-Output Model (Leontief Model)

1.24.1. Introduction
1.24.2. Assumptions of Input Output Models
1.24.3. The open model
1.24.4. The Closed Model
1.25. Linear Programming
1.25.1. Introduction
1.25.2. Formulating Linear Programming Problems
1.25.3. Solving Linear Programming Problems by
1.25.3.1. The Graphic Method
1.25.3.2. The Simplex Method
1.25.3.3. The Duality Theorem

Introduction

Economic theories help us to understand how the economy operates and what kind of
economic policies (measures) are appropriate when the economy is sick. Economic models,
through simplifying the real world phenomena, are the underlying frame works of economic
theories. These models are used to analyze the basic relationship among economic variables and
to make predictions about the effect of change in these variables.

As you have been introduced in Calculus for economists, the mathematical aspect plays a
significant role by providing a generalized technique of analysis. The search for solutions to
economic problems requires being well equipped with the basic mathematical tools besides
understanding the basic economic theories.

Linear Algebra for Economists is the continuity of calculus for economists, and you have
been discussing the cause and effect relationship between different variables through logical,

3
 graphical and mathematical tools, hence you are well aware about different techniques of
analysis.

Thus, this course is designed in such a way that first it deals with matrices and algebra of
matrices. Under this topic, matrix operations, basic properties of determinants, special
determinants some idea of vectors and inverse of a matrix will be discussed.

Secondly, different simultaneous linear equation solving techniques will be discussed.

Finally, the course is extended to cover the input – output model (Leontief model) and linear
programming that are important mathematical techniques directly associated with economic
models.

Chapter Two

1.1. Algebra of Matrix

1.1.1. Addition of Matrices
1.1.2. Multiplication of Matrices
1.1.3. Power of square Matrix
1.1.4. Trace of Square Matrix
2. Matrix

 Definition: Matrix is a rectangular array of numbers [ 26], parameters ¿ , or variables[ YX ]; each of

[ ]

which has a carefully order place within the matrix. A matrix is not an aggregate of numbers,
parameters or variables, rather in a given matrix; each element has its own assigned position in a
particular row and column.
The numbers, parameters or variables are called elements or members of the matrix. The
elements in a horizontal line are called rows while the elements in the vertical line are called
columns.
Purposes of matrix

Matrix algebra enables us to do:

 It permits expression of a complicated system of equations in a simplified way.

 It leads to a way of testing the existence of solution for equations thought evaluation of
determinants.
 It gives a method of finding that solution (if it exists).
 Matrix algebra however can only be applied to linear system of equations.
Size of matrix
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 If a matrix has total number of elements “MN” arranged in “M” rows and “N” columns, then the
matrix is said to be order (dimension) M by N and written as MxN matrix.
Matrix A = Matrix B, if and only if they have the dimension (order) and each element of matrix
A equal to (the same) the corresponding elements of matrix B.

A= [ ac bd ] B= [ ge hf ]
A = B if and only if ()

a=e b= f c=g d=h

1.2. Types of Matrix

 If the number of rows and number of columns of a matrix are equal, (M=N) then the matrix is a
square matrix of order n.
a
 If a matrix consists of only one column as A = ⌈ b ⌉ and many rows, it is said to be column
c
matrix.
 If a matrix consists of only one row as B = ⌈ e f g ⌉ and many columns, it is said to be row
matrix.
 A transpose matrix, represented by “AT” is a matrix in which the rows of “A” are converted to
columns and the columns of “A” changed to rows. I.e. if “A” is MxN matrix, then transpose of
matrix A, AT = NxM dimension.

[ ] [ ]
1 2 3 1 8 7
Examples: A = 8 9 4 A 2 9 6
T=

7 6 5 3 4 5

 In linear algebra, a real number such as 6, -8, or 0.5… are called a scalar.
 If a matrix’s all elements are zero all in all, then it is said to be zero matrix or null
matrix.

[ ]
0 0 0
0 0 0 0 0
Example: A = 0 0 0 B= ⌈ ⌉ C=⌈ ⌉
0 0 0 0 0
0 0 0
 If M = N and aij = 0 for i  j, that is a square matrix in which all non diagonal elements
are zero is called diagonal matrix.

[ ]
3 0 0 1 0 0
1 0
Example: A = ⌈ ⌉ B = ⌈ 0 3 0⌉ C= 0 1 0
0 2
0 0 3 0 0 1
 A diagonal matrix in which all diagonal elements are one (1) is called identity matrix.
Matrix Operations:

A. Addition and subtraction of matrices

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 Addition and subtraction of two matrices “A” and “B”, A+B and A-B requires that the two
matrices be of equal dimension (order). When this condition is met, the matrices are said to be
conformable for addition or subtraction. Each element of one matrix is then added to or
subtracted from the corresponding element of the other matrix. In such a manner, the addition or

[a ] ij [b ] ij

subtraction of A = and B = is defined as the addition or subtraction of each pair of

corresponding elements. That is

If A = [ a ij ] and B = [b ]ij

A+B= [a ij + b]ij

Α− β = [a ij − b]
ij

[a 11 a 12 ]
¿ ¿¿¿
Example: If A = ¿

a 11 +b11 a 12+b 12 a 11−b 11 a12−b12

A +B = ⌈ ⌉ A-B ⌈ ⌉
a21 +b21 a22+ b22 a21−b 21 a22−b 22

Properties of matrix addition and subtraction

 Matrix addition is commutative but not subtraction. A+ B = B+A but A- B  B-A
 Matrix addition has associative property, (A+B) +C = A+ (B+C).
 A(B+C) = AB+AC
 (B+C)A= BA+ CA
 A(B-C) = AB-AC
 (B-C)A = BA-CA
B. Multiplication of matrices

Determinant

A determinant is simply a scalar constant/ number associated with square matrixes. Determinant
of a matrix is represented by a straight-line (   ).
Example, if A is a matrix, then determinant of A is represented as  A.

6
 [ ]
2 1 3
Example A = 4 5 6 . Find A = 2[(5*9)-(8*6)]-1[(4*9)-(7*6)] +3[(4*8)-(7*5)
7 8 9
 2(45- 48) - (36- 42) +3(32-35)  2(-3) – (-6) -3(-3)
 -6+6-9 = -9

[ ]
−7 0 3
B= 9 1 4 Find A = 295 (check it)
0 6 5
Sarru’s diagram
−7 0 3 −7 0
9 1 4 9 1
0 6 5 0 6
Det = -7*1*5+0*4*0+3*9*6-3*1*0-(-7)*4*6+0*9*5 =295
If the determinant of a matrix is equal to zero, the determinant is said to vanish and the matrix is
termed as singular matrix. A singular matrix is one in which there exists linear dependency
between at least two rows or columns. If  A  0, matrix A is nonsingular and all its rows and
columns are linearly independent.

 If linear dependence exists in a system of equations, the system as a whole will have an infinite
number of possible solutions, making unique solution impossible.
Thus,
 If  A = 0, the matrix is singular and there is linear dependence among the equations. No
unique solution is possible.
 If  A  0, the matrix is nonsingular and there is no linear dependence among the equations.
Unique solution can be possible.
 The rank of a matrix (r (A)) is defined as the maximum number of linearly independent rows or
columns in the matrix. The rank of a matrix also allows for a simple test of linear dependency,
which follows immediately. Assume a square matrix of order n,
If r (A) = n, A is nonsingular and there is no linear dependence.
If r (A) < n, A is singular and there is linear dependence.

Third order determinants

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 The determinant of a 3x 3 matrix,

[ ]
a11 a12 a13
A= a2 1 a22 a23 is called as a third order determinant and is a summation of three
a3 1 a32 a33

products. To drive three products,

1. Take the first element of the first row, a 11, and mentally delete the row and the column in which it
appears. Then multiply a11 by the determinant of the remaining elements.

[ ]
a11 a12 a13
a2 1 a22 a23
a3 1 a32 a33

2. Take the second element of the first row, a 12, and mentally delete the row and the
column in which it appears. Then multiply a12, by -1 times the determinant of the
remaining elements.

[ ]
a11 a12 a13
a2 1 a22 a23
a3 1 a32 a33

3. Take the third element of the first row, a 13, and mentally delete the row and the column
in which it appears. Then multiply a13 by the determinant of the remaining elements.

[ ]
a11 a12 a13
a2 1 a22 a23
a3 1 a32 a33

Thus, the calculation for the determinant is as follows:

| A|= a11 |a22 a23

a32 a33 |
+ a12 (-1) |
a2 1 a23
a3 1 a33 | |
+ a13
a2 1 a 22
a3 1 a3 2 |
= a11 (a22 a33- a23 a32) - a12 (a21 a33- a23 a31) + a13 (a21 a32- a22 a31)
= a scalar
In like manner, the determinant of a 4x4 matrix is the sum of four products;
To find Determinants using excel spread sheet(computer)

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First, the given matrix should be a square matrix. If so,
A) First, select a cell where the determinant (the answer) is to be written.
B) Type = (equal to) sign and type MDETERM.
C) Open bracket (
D) Then, specify the cell range A1:B7 and close the bracket.
E) i.e =MDETERM(A1:B7)
F) Then say “enter”
To find inverse
a. Select new cells the same dimension with the given matrix.(answer place)
b. Write equal to sign(“=) and type “MINVERSE” then specify the cell range and close
the brackets i.e = MINVERSE(H1:H3) then
c. Ctrl+shift+enter
To find transpose
a. Select new cells with the same dimension as the given matrix.(answer place)
b. Write equal to sign = and type “TRANSPOSE” then specify the cell range and
close the brackets i.e = TRANSPOSE (Q1:Q3) then
c. Ctrl+shift+enter

To find matrix multiplication

a. Check whether the given matrixes are conformable for matrix multiplication or not. To be
conformable for multiplication, the number of column of the first matrix must be equal to
the number of the row of the second matrix.
b. Decide the dimension (size) of the result matrix. I.e. the dimension of the result matrix
will be determined by the row of the first matrix and the column of the second matrix.
c. Select new cells with dimension decided by “b” (answer place).
d. Write equal to sign = and type MMULT open brackets and then specify the cell range
of the first matrix, then type comma and specify the cell range of the second matrix,
close the brackets. =MMULT(C17:E19,H11:H13)
e. Hold Ctrl+shift+enter

Minors and cofactors

9
 The elements of a matrix remaining after deletion process form a sub determinant of the matrix
is called a minor. Thus, a minor  M iJ is the determinant of the sub matrix formed by deleting
the ith row and jth column of the matrix.
Using the above given matrix,

|M 11| = |a22 a23

a32 a33 | |M 12| = | |
a21 a23
a31 a33
|M 13| = |
a21 a22
|
a31 a3 2

Where  M11 is the minor of a11,  M 12 is the minor of a12, and M 13 is the minor of a13.
Thus, the determinant of  A can be written as
| A| = a11|M 11|+ a12 (-1) |M 12|+ a13 |M 13|
A cofactor  Cij is a minor with a prescribed sign. The rule for the sign of a cofactor is
|C ij| = (-1)i+j |M ij| .
 Thus if the sum of the subscripts (i+j) is an even number, |C ij| = |M ij| ,since -1 raised to an even
power is positive.
 If i+j is equal to an odd number, |C ij|= -|M ij| , since -1 raised to an odd power is negative.
The cofactors for |C 11|, |C 12| and |C 13| for the above given matrix are found as;
|C 11| = (-1)1+1|M 11|, since (-1) 1+1 = (-1)2 =1,

|C 11| =|M 11|= a22 | a

32
a23
a33 |
|C 12| = (-1)1+2|M 12|, since (-1)1+2 = (-1)3 = -1

|C 12| = - |M 12|= - a21 | a

31
a23
a33 |
|C 13| = (-1)1+3|M 13|, since (-1)1+3 = (-1)4 = 1

|C 13| = |M 13|= a21 |a

31
|
a22
a32

Given A = [ a11 a12

a21 a22 ]
Find (a) the minor |M ij|
(b) The cofactor |C ij| for each of the elements in the first row.

10
 a) To find the minor of a11, mentally delete the row and column in which it appears. The
remaining element is the minor. Thus |M 11| = a22. Similarly, |M 12| = a21
b) From the rule of cofactors, |C 11| = (-1)1+1|M 11|= +1(a22) = a22
|C 12| = (-1)1+2|M 12|= -1(a21) = -a21
Example: Given A= [ 1319 1715 ]
Find (a) the minors and (b) the cofactors for the elements of the second row.
a) |M 12| = 17 |M 22| =13
b) |C 21| =(-1)2+1|M 21| = -1(17) = -17
|C 22| = (-1)2+2|M 22| = 1(13) = 13

Example 2: Given A = [ 79 1110]

Find (a) the minors and (b) the cofactors for the elements of the second column.
a) |M 12|= 9 |M 22| =7
b) |C 12| = (-1)1+2|M 12| = -1(9) = -9
|C 22| = (-1)2+2|M 22| = 1(7) = 7

[ ]
2 −4 5
Example 3: Given A = −3 6 8
7 1 9
Find (a) the minors and (b) the cofactors for the elements of the first row.

a) Deleting row 1 and column 1 |M 1 1| = |61 89| = (9*6) - (1*8) = 54-8= 46

|M | | 7 9| = ((-3)*9) – (7*8) =-27-56 = -83
−3 8
Deleting row 1 and column 2 12

|M | | 7 1| = ((-3)*1) – (7*6) = -3-42 = -45

−3 6
Deleting row 1 and column 3 13

|61 89| = (9*6) - (1*8) = 54-8= 46

b) |C 11| = (-1)1+1|M 11| =

|C | = (-1) |M | = -1|−3
12
1+2
12
7 9|
8
= -1[(-3*9)-(7*8)] =-1(-27-56) = 83

|C | = (-1) |M | = |−3
13
1+3
7 1|
13
6
= (-3*1) - (7*6) = -3-42= -45

11
 [ ]
11 9 4
Example 4: Given A= 3 2 7
10 10 6
Find (a) the minors and (b) the cofactors for the elements of the third row.

a) Deleting row 3 and column 1 |M 3 1| =|92 74| = (9*7) - (2*4) = 63-8= 55

Deleting row 3 and column 2 |M | = |
3 7|
11 4
32 = (11*7) - (3*4) = 77-12= 65

Deleting row 3 and column 3 |M | = |

3 2|
11 9
33 = (11*2) - (3*9) = 22-27= -5

b) |C | = (-1) |M | = |
2 7|
3+1 9 4
31 31 = (9*7) - (2*4) = 63-8= 55

|C | = (-1) |M | = -1| 3 7| = -1[(11*7)-(3*4)] =-1(77-12) = -65

3+2 11 4
32 32

|C | = (-1) |M | = | 3 2|= (11*2) - (3*9) = 22-27= -5

3+3 11 9
33 33

[ ]
13 6 11
Example 5: Given A = 7 10 2
12 9 4
Find (a) the minors and (b) the cofactors for the elements in the second column.

a) Deleting row 1 and column 2 |M 12| = |172 24| = (4*7) - (2*12) = 28-24= 4
| = |12 4 | = (13*4) - (12*11) = 52-132= -80
1 3 11
Deleting row 2 and column 2 |M 2 2

| = | 7 2 | = (13*2) - (7*11) = 26-77= -51

1 3 11
Deleting row 3 and column 2 |M 3 2

|172 24| = -1[(7*4) - (12*4)] = -1[28-24]= -4

b) |C 12| = (-1)1+2|M 12| = -1

|C | = (-1) |M | = |12 4 | = (13*4)-(12*11)] =(52-132) = 80

2+2 13 11
22 22

|C | = (-1) |M | =-1 | 7 2 | = -1[ (13*2) - (7*11)] = -1[26-77]= 51

3+2 13 11
32 32

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LAPLACE EXPANSION AND HIGER- ORDER DETERMINANTS
Laplace expansion is a method for evaluating determinants in terms of cofactors. It thus
simplifies matters by permitting higher order determinants to be established in terms of lower
order determinants. For example, laplace exapnsion of a third order determinat can be
expressed as
| A| = a11|C 11|+ a12 |C 12| +a13|C 13|
Where, Cij  is a cofactor based on the second order determinant. a12 is not explicitly multiply

by -1, since, by the rule of cofactor C12 will authomatically be multiplied by -1.
Laplace expansion permits evaluation of a determinant along any row or column. Selection of a
row or column with more zeros than others simplifies evaluation of the determinant by
eliminating terms. Laplace expansion also serves as the basis for evaluationg determiants of
orders higher than three.

Example

Where cofactors are third-order sub determinants, which in turn can be reduced in to second –
order sub determinant as above, fifth-order determinants and higher are treated in similar
fashion.

13
 Example1:

Example2:

14
 More examples on Laplace expansion

PROPERITES OF DETERMINANTS
1. The determinant of a matrix equals the determinant of it transpose.

Example

15
 2. Interchanging any two rows or columns will affect the sign of the determinant, but not the
absolute value of the determinant.

3. Multiplying a single row or column of a matrix by a scalar will cause the value of the
determinant to be multiplied by the scalar.

B = 2A
4. Addition or subtraction of a non-zero multiple of any row or column to or from another row
or column does not change the value of the determinant.

16
 a) Find A (b) subtract 5 times column 2 from column 1, form a new matrix B and find B.

5. The determinant of a triangular matrix (which has zero elements everywhere above or below
the principal diagonal). (Both upper and lower triangular) is the product of the elements along
the principal diagonal elements.

17
6. If all the elements of a row or column equal zero, the determinant will equal zero.

7. The determinant of the product of two matrices is the product of their determinants.

Example A=
2 1
4 3
B=
1 2
5 3 [ ] AB = ⌈
7 7
19 17
⌉

A = 2 B= - 7 AB = -14  A * B = 2*-7

INVERSE OF A MATRIX

18
More examples

19
20
21
Properties of Inverses
The following properties of inverse matrices are of interest.

a) Not every square matrix has an inverse – square matrices cannot have an inverse -if they are
singular matrices.
b) If A is nxn then A-1 must also be nxn; otherwise it cannot be conformable for both pre and
post multiplication
c) If an inverse exists, then it is unique. A matrix cannot have more than one inverse.
d) The inverse of an inverse is the original matrix, (A-1)-1 = A.
e) The inverse of a product is the product of the inverse in the reverse order. (AB)-1 = B-1A-1
f) The inverse of the transpose is the transpose of the inverse, (AT)-1 = (A-1)T

The Rank of A matrix

( A)
The rank of a matrix P is the maximum number of linearly independent rows/columns of the
matrix. The rank of a matrix cannot exceed the number of rows/columns/ whichever is smaller. It
can also be depended as the maximum order or dimension of a non-vanishing determinant that
can be constructed from the rows/columns/ of that matrix.
( A)
Example1. Determine the rank r of the following matrices.

[ ] [ ]
−2 6 1 2 −4 1
2 3 4 6 1 3
1 5 0 8 2 4
a) A = b) B=

|3 4 ¿|¿ ¿ ¿
|A| ¿
Solution a) = -2
(−20 ) −6 (−4 ) + 7
= -2
¿0
= 40+24+7 = 71

22
 |A| ¿ 0
Thus, with , A is non-singular and the three rows or columns are linearly independent,
γ (A) = 3
hence,

|B| = 2 ¿|1 3 ¿|¿ ¿

¿
b)
(−2 ) + 4 ( 0 ) + ( 4 ) = 0
= 2 1

|Β| γβ
With = 0. B is singular and the three rows/columns are not linearly independent. Hence
¿ 3
. Now test to see if any two rows/columns are independent. Starting with the sub matrix in
the upper left corner, take the 2 X 2 determinant,

|2 −4¿|¿¿¿
¿ ¿0
= 2+24 = 26
γβ β
Thus, = 2. There are only two linearly independent rows and columns in .
For a square matrix, its rank can be used to determine whether the matrix is singular or non-
singular. An n x n matrix is non-singular if and only if rank of matrix A = n

[5 2 ¿ ] ¿ ¿¿
¿
Example 2. The rank of matrix is 2; because this second order matrix corresponds
to the determinant of the matrix, which is non – zero, thus the given matrix contains a non –
singular matrix of order 2.

[8 6 ¿ ] ¿ ¿¿ [8 6 ¿ ] ¿ ¿¿
¿ ¿
Example 3. The rank of matrix is 1 the highest order determinant is
zero, next to this would be of the first order which is non – zero.

23
 [0 0 ¿ ] ¿ ¿¿
¿
Example 4 Rank of is also zero.
From the above examples, we can take the following generalizations.
1. The rank of a matrix is not related in any way to the number of zero elements in it.
2. The rank of a matrix cannot exceed the number of its rows or numbers of its columns
which ever (since a determinant has equal number of rows and columns) is smaller
3. The rank of a column matrix of any number of rows (matrix 3 x 1) is at most 1 while rank
of matrix 3 x 50 is at most 3.
4. The rank of a matrix is at least one unless the matrix is a null matrix.
Note the following points
 Rank of the transpose of a matrix is the same as the rank of the original matrix.
 The row and column ranks of a matrix are equal
 A matrix A is non – singular if rank of A = n.

|A| ¿ 0
 If a matrix is an n x n matrix, then rank of A = n Iff A is non - singular or

. Vectors and vector spaces

In the preceding section, you saw transpose and inverse of matrices which enables you to cope
with solving linear equations. Let us now highlight vectors and vector spaces in matrices.
Vectors; A vector is an ordered set or directed line segment
1- The ordered set V= ( a1, a2,…. an) is called a row vector.

[]
b 1

b 2

b n

2- V= is called a column vector

a a a 1 2 n

3- are coordinates or components of the vector, these are ordinary scalars.

Properties of Vectors

v (a a )
1 1 2 v (b b )
2 1 2

Let = and =

24
 v 1 v 2 ⇔ (a a ) (b b ) ⇒ a b 1
1 2 1 2 1 2 a b
2 2

1. = = = and =

Two vectors are equal of corresponding components are equal

v v 1 2 v 3 (a a ) (b b ) (a
1 2 1 2 1+ b a
1, 2+ b) 2

1- + = = + =
Κ
2- Let be a scalar, i,e a real number.

Κν ( Κα 1 1, Κα ) 2

3- The inner Product of two vectors is not a vector but a scalar /real number.

v 1 v 2

Example 1 = row vector = row vector

V 1 ( 3 , 4, 6 ) V 2 ( 10 , 9, 12 )
= and =

3ν V 1 2

Find +

3ν 1 ( 3 x3, 4 x3, 6 x3 ) ( 9, 12 , 18 )
= =

3ν V 1 2 ( 9+10 , 12+9 , 12+18 )

+ =

( 19, 21, 30 )
=
Properties of the algebraic operation in vectors
1. Vector addition is commutative
¿+ β= β +∝

2. Vector addition is associative

(¿ + β ) ¿ ¿ (β + ¿)
+ = +

25
 θ
3. There exists a zero/null/ vector such that
¿ +θ=θ+¿ = ¿ θ
, so that is a zero vector
θ ( 0, 0 ,..... 0 ) ¿
i.e =
θ θ ¿+−¿=θ
4. Each vector has an additive inverse (- ) such that

¿ ( a+ b ) ¿ a ¿ ¿
5. For all real a and b and a vector , x = x +bx

Κ Κ (¿ + β) Κ ¿ ( Κ +β )
6. For any real , x = x +

Κ Κ
1 ⋅¿ ¿ 2 ¿ Κ (Κ 1 2⊗ ¿ ) Κ 1 Κ 2 ¿
7. x = x Where and are scalars and is vector.

V 1 (4 , 1) V 2 ( 3 , 2) V 3 (5 , 4)
Example 1 Given = and = and =

Κ 1 Κ 2 Κ 3

Find the linear combination of these vectors if we have three scalars. = 1, = 2 and = 3.
¿
Solution Let be the linear combination of the above vector

¿ Κ ν 2  2 Κ ν
1 1 3 3

Then = + +

¿ ν  1 2 ν 3

= +2 +3
( 4 , 1 ) + 2 ( 3 , 2 ) +3 ( 5 , 4 )
=
( 4 , 1 ) + (6 , 4 ) + ( 15 , 12 )
=
( 4 +6+15 , 1+4+12 )=( 25 , 17 )
=

26
 [ ]
2 1 0
6 2 4
4 2 0
Example 2 Let A =
Test the linear independence of the above matrix.

ν 1 (2 , 1 , 0 )  2 ( 6 , 2 , 4 ) and ν 3 = ( 4 , 2 0)
Solution: Let = =
If there is linear dependence among the three vectors, their linear combination varnishes for not

Κ ν +Κ ν +Κ ν
1 1 2 2 3 3 =0
all scalars equal to zero, that is

⇒ Κ 1 (2 , 1 , 0 ) + Κ 2 (6 , 2 , 4) + Κ 3( 4 , 2 , 0) = 0

⇒ (2 Κ , Κ 1 1 , 0 + 6 ) ( Κ 2 ,2 Κ 2 ,4 Κ ) +(4 Κ
2 3 +2 Κ 3 + 0 =0 )

⇒ (2 Κ 1 +6 Κ 2 +4 Κ ,Κ 3 1 +2 Κ 2 ,+2 Κ 3 ,0+4 Κ 2 )
+ 0 = (0 , 0 , 0)

⇒ Κ 1 +6 Κ 2 +4 Κ 3 =0 , Κ 1+ 2 Κ 2 +2 Κ 3= 0, 4 Κ 2 =0
2

⇒ Κ 2 =0

⇒ Κ 1 + 4 Κ 3 = 0 and Κ 1 +2 Κ 3 =0
2
⇒
Solving the above two systems of equations, we have

Κ 1 +4 Κ 3 =0
2

Κ 1 + 2 Κ 3 =0

⇒
0=0

27
 Κ 1 ≠0, Κ 2 ≠ 0 , While Κ 2 =0
Thus,

ν 1 and ν 2

Therefore, there is linear dependence between

ν 1 = ν 3

Since 2
Note: In a given matrix, if there is linear dependence among the column/row vectors of that
matrix, then the determinant of the matrix is zero and its inverse is undefined.

Chapter 2
Systems of Linear Equations
1. Objectives :- After taking this unit you will be able to
- Express simultaneous linear systems of equations in matrices form
- Test the non – singularity of the coefficient matrix of linear equations and calculate its
inverse.

28
- Obtain the solutions for linear systems of equation by the inverse, Cramer’s rule and Gauss
Jordan elimination methods.
- Apply these methods to economic problems.

Matrix Representation of Linear systems of Equations

Linear systems of equations are those linear simultaneous equations involving two or more
equations and variables.
a X + bY = M
Examples. --------- (1)
cX + dY = N

Is a system of two linear equations in two unknowns (X and Y)

a χ +a χ =c
11 1 12 2 1

While

a 21 χ1 + a χ =c
22 2 2

---------(2)

a χ +a χ =c
31 1 32 2 3

(χ 1 and χ)
2

is a system of three (simultaneous) linear equations in two unknowns

Generally a system of “M” linear equations in “n” unknowns can be formulated as:

a χ +a χ +a χ
11 1 12 2 13 3 + −−−− + a χ =b
1n n 1

a χ +a χ +a χ
21 1 22 2 23 3 + −−− + a χ =b
2n n 2

--------- (3)
⋮

a χ + a χ + a χ + −−−− + a χ = b
m1 1 m2 2 m3 3 mn n m

29
 j
th
χ j χ 3

From equation (3), the variable appears only in the column for instance appears

a i
th

ij

only in the 3rd column. The double subscripted represents the coefficient, appearing in the
th
j a 32

equation (row) and attached to the variable (column). For example represents the

b i
rd
coefficient in the 3 equation and attached to the second variable. The parameter represents

i
th

the constant term a long equation.

To sum up, there are three important and inevitable ingredients of a system of equation.

⇒ a ij

The set of coefficients

⇒ χ i

The set of variable

⇒ b i

The set of constants after the equality sign,

i
Where = 1, 2 , 3 ….. m
j
= 1, 2, 3 ….. n
If we arrange the above three ingredients as three rectangular arrays and apply the rules of
multiplication of matrices and their equality the above system of equation can be written in a
single matrix as
Αχ = β where A = Coefficient matrix
χ
= Variable matrix
β
= the constant column vector.
Thus, equation (1) can be rewritten as

30
[a b ¿] ¿ ¿ ¿
¿
Similarly equation (3) can be compacted as.

[ ]
a a 11 12 … a 1n

a a 21 22 … a 2n β=¿ [ b ¿][ b ¿] [⋮¿] ¿ ¿

1 2
⋮ ⋮ ⋮ ¿
a m1 a m2 a mn

A=

Αχ β ⇒
Thus, =

¿¿ Μ χ n¿¿¿¿¿ ¿¿¿ nx1¿¿¿¿ ¿ Μ χ1¿¿¿¿ ¿

=
¿

Αχ = β
Thus, is the matrix representation of linear systems of equations.
Example1. Given the following systems of equations
x + y =14
2x +5y = 6, we can write it as

Α = ¿[1 1 ¿] ¿ ¿
¿
Αχ = β ⇒

[1 1¿]¿¿¿
¿
Example2.

31
At “Arada” market center, there are three electronic merchants (Aster, Nesru and Mekashaw who
sell

1 Aster sells asset of 150 Refrigerators, 100 TV sets and 120 Taps
2 Nesru sells asset of 200 Refrigerators, 50 TV sets and 80 Taps
3 Mekashaw sells asset of 140 Refrigerators, 150 TV sets and 100 Taps.

Assume, if unit price of each materials is Birr 3500 per refrigerator, Birr 2000 per TV sets and,
Birr 1500 per taps, then form/write a system of linear equations that help to calculate the total
revenue for each merchants using matrix.
(Refrigerators) (TV sets) (Taps)

Aster 150 100 120

Nesru 200 50 80

Mekashaw 140 150 100

[ ]
3500 → Price per refrigerator
2000 → Pr iceperTVsets
1500 → Price per taps

The total revenue can be obtained by multiplying the number of commodities sold, Refrigerator
R, TV sets (T) and Taps (Ta) by their respective selling prices and then adding up the results of
these multiplications.

[ ]
3500 → Pr ice per Re frigerator
2000 →Price per TV sets
[ 150 100 120 ] 1500 → price Per Tapes
Aster will obtain X
[ 150 X 3500 + 100 X 2000 + 120 X 1500 ] [ 905 , 000 ]
Which can be written as =
Nesru will obtain at constant prices

[ ]
3500
2000
[ 200 50 80 ] 1500
, Which can also be rewritten as:

32
[ 200 X 3500 + 50 X 2000 + 80 X 150 ] [ 920 , 000 ]
=

[ ]
3500
2000
[ 140 150 100 ] 1500
Mekashaw will obtain
This can be rewritten in a similar fashion as
[ 140 X 3500 + 150 X 2000 +1 00 X 1500 ] [ 940 , 000 ]
=
The above analysis can be rewritten as
Shops R T T

[ ][ ] [ ]
Aster 150 100 120 3500 → Pr ice per Re frigerator 905,000
Nesru 200 50 80 2000 → Pr ice per TV sets 920,000
Mekashaw 140 150 100 1500 → price per Tapes 94, 000
X =

[ ][ ]
(150 X 3500 ) + ( 100 X 2000) + ( 120 X 1500 ) ) 905 ,000
(200 X 3500 ) +(50 X 2000 ) + ( 80 X 1500 ) 920 ,000
(140 X 3500 ) + (1500 X 2000) + (100 X 1500 ) 94 , 000
= = Revenue

2. Assume Dashen Brewery wants to advertise three of its main products, Dashen Beer, royal
Beer and royal Draft a per unit at least of Birr 150, 200 and 120 respectively per
advertisement. If the firm advertises 4 days of Dashen Beer, 6 days loyal beer and every day
per week loyal draft respectively. Then what will be the total cost of the firm in a month?
In transforming linear systems of equations in to matrix form, we can follow the following steps.

1. First check how many variables and how many equations are involved and whether they
are written in proper order. If they are not in a proper order, rewrite it in to proper order.
2. Write out the coefficient matrix and its dimension underneath.
3. Write the variable matrix (column vector and it dimensions determined by the number of
variables involved in it.

33
 4. Write the constant column vector which will be equal to the number of equations
involved.
5. Check that the three rectangular matrices will confirm to the rule of matrix multiplication.
6. Finally notice that the variable column vector X will be pre multiplies by the coefficient
Αχ = β
matrix, A and the product will be equal to the constant column vector, B. i.e
Methods of solving simultaneous systems of equations
In this chapter, we will see three methods to solve simultaneous linear system of equations

 Matrix inversion method

 Cramer’s rule
 Gauss Jordan Elimination Method(GJEM)

A system of linear equation will have a solution

A. it is consistent and
B. it is as well linearly independent
A system of equation is said to be consistent if it possesses one or more solution, meaning when
the system of equation has one solution unique or determinate solution or if it posses an infinite
number of solution.

(|Α| ≠ 0 ) ,
If the matrix is non-singular then there will be unique solution for the system of
equation and the system is said to be consistent. But if the matrix is singular and if equations are
not contradictory to each other, then the system will also be consistent and there will be an
infinite solution for the system.
χ +γ =5
2 χ + 2γ = 8
Example i) Given

[1 1 ¿]¿¿¿
¿
A=

|Α| = 2 − 2 = 0

The above equation can be rewritten as

34
x+y = 5
x+y = 4
Here, note that the determinant of the coefficient matrix is zero and two systems of equations are
contradictory to each other such that there is no solution satisfying them simultaneously.
2χ + γ = 4
χ +γ =3
ii) Let

Α = ¿[2 1¿]¿¿
¿

|Α| = 2 − 1 = 1

|Α| ≠ 0 ,
Since then A is non singular, then there will be unique solution for the system i.e
χ = 1 , γ = 2.

iii) Consider the system of equation

2 χ + 4γ = 6
2 χ + 4γ = 7

Subtracting the second equation from the first, we have

2 χ + 4γ = 6
2 χ + 4γ = 7

⇒ 0 = −1
0 + 0 = -1
It is not true that 0 and -1 are equal. Thus, the two systems of equation are rather inconsistent
and their coefficient matrix is singular. Thus such systems of equation don’t have any solution at
all.
A system of equations that has no solutions is said to be inconsistent.
Note: Every system of linear equations has no solutions, or has exactly one solution, or has
infinitely many solutions.
2.3.1. Inverse Method

35
After having an idea on how to identify equations as consistent and inconsistent, we can proceed
to look for solutions for those systems of equations which are consistent, but before proceeding
to solve for systems of equation it is good to classify linear equations in to homogeneous and non
– homogeneous equations.

Homogeneous equations:. A system of equation is said to be homogenous, if the constant term

is a zero column vector,

i.e
¿¿ nx1¿¿¿¿ Thus, the system is of the form
Αχ = 0

Homogeneous systems of equations with singular coefficient matrix will have an infinite
number of solutions.
Example
4x+10y = 0
2x+5y = 0. Here X and Y will have an infinite number of solutions because, the determinant
is zero. Thus, we cannot find unique solutions for X and Y as long as the coefficient matrix
is singular.

Non – Homogeneous Equation A given system of equation is said to be non – homogenous, if

β≠0
the constant column vector elements are not all zero,
The solutions of non homogenous equations.
Important steps.
Αχ = β
Step 1. Write down the given system in a single matrix form,
Α = The coefficient matrix
χ = The var eiable columnvector
β = The cons tan t column vector
Where

36
 [ ]
a a a
11 12 13

a a a
21 22 23
χ =¿ [ χ ¿][ χ ¿] ¿ ¿
1 2
¿
a a a
31 32 33

Let A=

⇒ A ( 3 x 3) χ ( 3 x 1) = β ( 3 x 1)

|Α|
Step 2. Evaluate

|Α| ≠ 0,
a. When
−1 −1
|Α| ≠ 0, Α Α
Step 3 - If matrix A is non singular, then exists and find
−1
Αχ = β Α
Step 4 - Pre multiply both sides of the equation by
−1 −1
⇒ Α (3 x3 ) Α (3x3) χ (3x1) = Α (3 x 3) β (3 x 1)

−1
⇒ Ι ( 3 x 3) χ (3 x 1) = Α (3x3) β ( 3 x 1)

−1
⇒ χ (3 x1 ) = Α β

The right hand side of this equation is a column vector of known vectors while the left hand side
is a column vector of variables.
5. By the definition of matrix equality, equate the two left hand side & right hand side
Step

χ χ χ
1 2 3

column vectors and obtain the values of the variables

Example

1. Solve the following system of equation using inverse method.

4x+y = 12

37
 3x+5y = 4
Solution
The above equation can be rewritten in compact form as

AX =B where A = [ 43 15] X= [ ¿¿ xy ] B= [ ¿¿124 ]

|Α|
[= 43 15]  20 -3 = 17

Since |Α| matrix A is non – singular, thus A-1 exists.

 0,

To find A-1, let us first find the co – factor matrix C

 C = [C11 C12] = [−15 −34 ]

 C21 C22
5 −1
Adj A = CT  adjA = −3 4 [ ]

[ ]
5 −1
 A-1 =
adjA
❑
=
1 5 −1
17 −3 4 [
 Thus A-1 =
17
−3 ] 17
4
17 17

[ ][ [ ]
5 −1 56
¿
But X = A-1 B  X =
17
−3
17
4
¿ 12
¿4 ]
 X=
¿−
17
20
17 17 47
56 −20
Hence X = and Y=
17 47

|Α| = 0
b. when
−1
Α
In this particular case, the matrix A is singular and therefore, does not exist. Then you will
have to proceed as follows.

38
 adj β (3x1)

Find ( A) 3x3
There are two possibilities for the a above product
( adjA ) β ≠ 0 ,
i) If the product matrix then the given system of equation is inconsistent
and has no solution
Example
Given x+y = 4
3x+3y = 15, then find the value of x and y using matrix inversion.
Solution
The AX = B, form of the equation is

A= [ 13 13] x 4
X=[ ] B=[ ]
y 15

|Α| =
[ 13 13] = 3-3 = 0
Thus, matrix A is singular, and A-1 does not exist.
Next, we shall check whether the given equation is consistent or not

adjA = CT  C = [−13 −31 ]  adjA = C = [−33 −11 ] T

(adjA)xB = [ ] [ ¿3 ]
3 −1 4 ¿−3
[ ] = 0
−3 1 15
Since (adjA) xB  0, the given system of equation is inconsistent and has no
solution.
( adj A ) β = 0 ,
ii) If then the given system of equation is consistent and has infinitely
many solutions.

Examples
1. Solve the following system of equation using the matrix inversion method.

39
 4 x + 8γ = 6
2 χ + 4 γ =3

Solution

The AX = B form of the equation is

4 8 |Α| =
¿ ¿
2 4 = , AX = B, 
16-16 =0

Since, A = 0 matrix A is singular and A-1 does not exist.

Then we will have to check whether the given equation is consistent or not.

AdjA = CT  C =[−84 −24 ]  adjA = C = [−24 −84 ]

T

 (AdjA) xB = [
−2 4 ]
4 −8
x¿ = ¿

Thus, (AdjA)xB = 0 and the equation is consistent and will have an infinite number of solutions.

 A homogeneous system of linear equations with more unknowns than equations has infinitely many
solutions.
 A non homogeneous system with more unknowns than equations need not be consistent however, if
the system is consistent, it will have infinitely many solutions.

40
 A1
Therefore, X1 = , A1 is the determinant of the new matrix formed by replacing
A
coefficient of X1 by the constant column vector.
A2 A3 A4 An
X2 = , X3 = X4 = ……. Xn =
A A A A
Consider the system of linear equations in three variables
a11X1+a12X2+a13X3 = b1
a21X1+a22X2+a23X3 = b2
a31X1+a32X2+a33X3 = b3
The determinant of the coefficient matrix is given by

| |
a 11 a 12 a 13
 A = a21 a 22 a 23 and let  A  0
a31 a 32 a 33
According to the Cramer’s rule the solutions of the variables is given as

| |
b1 a 12 a 13
A1
X1= = b 2 a 22 a 23
A
b 3 a 32 a 33
a 11 a 12 a13
a 21 a 22 a 23  The first column of  A is replaced by b1, b2, b3
a 31 a 32 a 33

| |
a 11 b 1 a 13
A2
X2= = a21 b 2 a 23
A
a31 b 32 a 33
a 11 a 12 a13
a 21 a 22 a 23  The second column of  A is replaced by b1, b2, b3
a 31 a 32 a 33

| |
a 11 a 12 b 1
A3
X3= = a21 a 22 b 2
A
a31 a 33 b 3
a 11 a 12 a13
a 21 a 22 a 23  The third column of  A is replaced by b1, b2, b3
a 31 a 32 a 33

Note: The Cramer’s rule is applicable only for non – singular matrices. I.e. non singularity is a
necessary condition for the method as it was for the existence of A-1

41
42
43
44
45
46
 The Gauss-Jordan Elimination Method (GJEM)

This method mainly depends on the following three operations applied on the rows (columns) of
a matrix.
a. Interchange of any two rows (columns). If the ith row (column) is interchanged with the ith row
(column). We denote it as Ri Rij (Cj  Cj)
b. Multiplying the elements of a row (a column) by a non – zero a scalar. If the elements of a row
(column) are multiplied by a non – zero scalar K. We write Ri KRj (Cj  KCj).
c.Adding to the elements of a row (column) the constant times the corresponding elements of
another row (column). If K times the elements of ith row (column) are added to the corresponding
elements of the ith row (column), we write Ri Ri +kRj (Cj  Cj+KCj)
The GJEM is a general method applicable when the given system of equation is
i. Homogeneous /non – homogeneous/
ii. When the number of equations is that equal to the number of variables
iii. When the coefficient matrix is singular
The Rule of thumb

The technique of solving systems of equations using the Gauss Jordan elimination method
involves first obtaining a 1 in the a 11 position and then using this element to obtain 0 s in this
particular column. Then a 1 is found in the a22 position and using it to change other elements in
this column in to 0. The process continues to change a33 in to 1 and remaining elements in this
column in to 0. Thus, the rule continues to change the main diagonal element of a matrix aii in to
1 and other elements in this column aij, ij, in to 0. Here it is possible to change rows so that the
first element in the a11 position is non-zero.
Basic Steps

a. Write the system of equation in AX = B form

b. Augment the coefficient matrix with the constant column vector; that is A/B.

C. Then apply elementary row /column operation until the coefficient matrix is transformed
in to an identity matrix and the constant column vector is transformed in to a new
solution vector. i.e.  A-1A/A-1B  I A-1B = IX
A/B
Example

47
Solve the system of equation using the Gauss Jordan elimination method
2x+12y = 40
8x+4y =28
Solution, the AX = B form is given as

[ 28 124 ] xy = 4280
 A/B = [
8 4 ] 28
2 12 40

Dividing first row elements by 2 to change a11 in to 1.

R1=1/2 R1= [ 18 64] 2028  R = R - 8R = [ 10 −446 ]−132

2 2
20
1

 R = -1/44 R = [ ]  R = R -6R = [
0 1] 3
1 6 20 1 0 2
2 2 1 1 2
0 1 3
Thus X = 2 and Y = 3
Example2. Solve the following system of equation using the Gauss Jordan elimination method.
X-2y+3z = 1
3X-y+4z = 3
2X+y-2z = -1
The AX = B form of the equation is given by

[ ] [ ]
1 −2 3 x 1 1 −2 3 1
A= 3 −1 4 y = 3  A/B = 3 −1 4 3
2 1 −2 z −1 2 1 −2 −1
Since a11 is 1 we proceed as follows

[ ]
1 −2 3 1
 R2 = R2-3R1 = 0 5 −5 0
0 5 −8 −3

[ ]
1 −2 3 1
R3 =R3-2R1  R2 =1/5R2= 0 1 −1 0
0 5 −8 −3

 R1= R1+2R2

[ ] [ ]
1 0 1 1 1 0 1 1
R3= R3-5R2= 0 1 −1 0  R3= -1/3R3= 0 1 −1 0
0 0 −3 −3 0 0 1 1
 R1= R1-R3

48
 [ ]
1 0 0 0 x 0
R2= R2+R3 = 0 1 0 1, Thus x= 0, y = 1and z= 1  x= y =¿ 1
0 0 1 1 z 1

Example 3
3x1 + 12x2 = 102
4x1 + 5x2 = 48
Solve this equation using Gauss Jordan elimination method
First express the equations in an augmented matrix:

Then 1a) multiply row 1 by 1/3 to obtain 1 in a11 position

49
50
51
Exercises

Exercises solve using Cramer’s rule

CHAPTER 3 Special Determinants &Matrices in Economics

Determinant

52
53
54
Determinant

55
56
Determinant

57
58
59
60
61
62
63
64
65
66
67
68
 A is positive definite.

Chapter4. Input-Output analysis and Linear Programming

69
70
71
In generalterms, if there are n producing sectors,

72
73
74
75
76
77
78
79
where j represents the total output of the j industry

80
81
82
83
84
85
86
87
88
89
 2. Linear Programming: Using Graphs
Linear Programming (LP) is a mathematical procedure for determining optimal allocation
of scarce resources.
 It deals with a class of programming problems where both the objective function to be
optimized is linear and all relations among the variables corresponding to resources are
linear.
 Any LP problem consists of an objective function and a set of constraints.

Four general properties those are inherent in any LP model.

a. The objective is to be optimized by either maximization or minimization.
b. There are constraints restricting the activities that are required to carry out the objective.
c. All equations are linear. That is, check if all variables have power of 1 and they are added or
subtracted (but not divided or multiplied)
d. The activities (or decision variables) are generally non-negative. Moreover the constraint
must be not in strict inequality forms (that is, it should be either ≤, ≥, or =, i.e., the LP-constraints
are always closed).

The optimal solution (denoted as xi * ) gives the values for the decision variables that
optimize the objective function, that is, gives the best way to achieve the desired objective
while satisfying all the restrictions (constraints)
Any combination of values for the activities that satisfies all the constraints (including non-
negativity) constitutes a feasible solution.
An iso-contribution line shows all activity solutions that yield the same value for the
objective function.
the optimal solution is found by moving the iso-contribution line out/in as far as possible
until only one point on the line touches (is tangent to) a point on the feasible region.

90
 FORMULATING OF LINEAR PROGRAMMING PROBLEMS.
(Reading without understanding is barking, practice makes you perfect)
When we formulate LP, mostly we follow the following procedures.
a. Identify the objective function for the problem, (may be to maximize profits, or may be
to minimize costs or some other goal.
b. Identify the activities (decision variables or simply, variables) for the problem.
c. Identify the objective function coefficients for each activity.
d. Set up the appropriate structural constraints in the constraint set.

Eg

91
92
Example

Sketch the region 2x + y < 4

Solution
We first sketch the line
2x + y = 4, when x = 0 we get, y = 4 When y = 0 we get 2x = 4 and so x = 4/2 = 2.
The line passes through (0, 4) and (2, 0)

93
For a test point let us take (3, 2),
This lies above the line. Substituting x = 3 and y = 2 into the expression 2x + y gives 2(3) 2
8
This is not less than 4, so the test point does not satisfy the inequality. It follows that the region
of interest lies below the line. In this example the symbol < is used rather than ≤. Hence the
points on the line itself are not included in the region of interest. We have chosen to indicate this
by using a broken line for the boundary.

Example 2. Sketch the feasible region

x + 2y ≤ 12
−x + y ≤ 3
X≥0
Y≥0
Solution

94
In this problem the easiest inequalities to handle are the last two. These merely indicate that x
and y are non negative and so we need only consider points in the top right-hand quadrant of the
plane, as shown in

For the inequality x + 2y ≤ 12 we need to sketch the line x + 2y = 12

When x = 0 we get 2y = 12, and so y = 12/2 = 6. When y = 0 we get x = 12.
The line passes through (0, 6) and (12, 0). For a test point let us take (0, 0), since such a choice
minimizes the amount of arithmetic that we have to do. Substituting x = 0 and y = 0 into the
inequality gives 0 + 2(0) ≤ 12.which is obviously true. Now the region containing the origin lies
below the line, so we shade the region that lies above it.
For the inequality −x + y ≤ 3, we need to sketch the line, −x + y = 3, When x = 0 we get, y = 3
When y = 0 we get −x = 3 and so x = 3/(−1) = −3.

95
 Figure
The line passes through (0, 3) and (−3, 0). Unfortunately, the second point does not lie on the
diagram as we have drawn it. At this stage we can either redraw the x axis to include −3 or we
can try finding another point on the line which does fit on the graph. For example, putting x = 5
gives −5 + y = 3 so y = 3 + 5 = 8. Hence the line passes through (5, 8), which can now be plotted
along with (0, 3) to sketch the line. At the test point (0, 0) the inequality reads −0 + 0 ≤ 3 which
is obviously true. We are therefore interested in the region below the line, since this contains the
origin.
As usual we indicate this by shading the region on the other side. Points ( x, y) which satisfy all
four inequalities must lie in the un shaded ‘hole’ in the middle. Incidentally, this explains why
we did not adopt the convention of shading the region of interest. Had we done so, our task
would have been to identify the most heavily shaded part of the diagram, which is not so easy.
Exercise
Sketch the feasible region
x + 2y ≤ 10
−3x + y ≤ 10
x≥0
y≥0

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This method may be summarized:
Step 1
Sketch the feasible region.
Step 2
Identify the corners of the feasible region and find their coordinates.
Step 3
Evaluate the objective function at the corners and choose the one which has the maximum or
minimum value.
Corner Objective function
(0, 0) −2(0) 0 0
(0, 3) −2(0) 3 3
(2, 5) −2(2) 5 1
(12, 0) −2(12) 0 −24

MINIMIZATION USING GRAPHS

1 Assume a botanist wishing to mix fertilizer that will provide a minimum of 45 units of
phosphates A, 48 units of potash B, and 84 units of nitrates C. One brand of fertilizer y1 provides
3 units of phosphates, 4 units of potash, and 14 units of nitrates. A second brand y2 provides 9
units of phosphates, 6 units of potash, and 7 units of nitrates. The cost of y1 is $12; the cost of y2
is $20. The least-cost combination of y1 and y2 that will fulfill all minimum requirements is found
as follows.
1. The objective function to be minimized is
C= 12y1+20y2
Subject to the constraints
Constraint A: 3y1 + 9y2 ≥ 45
Constraint B: 4y1 + 6y2 ≥ 48
Constraint C: 14y1 + 7y2 ≥ 84
Non negativity constraint: y1, y2 ≥ 0
Where the technical constraints read ≥ since the minimum requirements must be fulfilled but
may be exceeded.
2. Treat the inequality constraints as equations. Solve each one for y2 in terms of y1 and graph.

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Thus
1
From A y2 = 5- y1
3
2
From B y2 = 8- y1
3
From C y2 = 12-2y1
The graph of the original “greater than or equal to” inequality will include all the points on the
line and to the right of it. The shaded area is the feasible region, containing all the points that
satisfy all three constraints plus the non negativity constraints.

3. To find the optimal solution within the feasible region, graph the objective function as a series
of (dashed) iso cost lines. Y2 = -3/5y1+c/50
Or take all the corner order pairs and evaluate them at the objective function and take the
lowest value as a solution.

Corner objective function (C= 12y1+30y2) at lowest 12(9) +30(2) = 148

(0, 12) = 360

(0, 8) = 240
(0, 5) = 150
(6, 0) = 72
(12, 0) = 144
(15, 0) = 180
(0, 0) =0
(9, 2) = 160  the optimum solution b/c from the feasible region the small one.
(3.85, 5.4) = 208.2
(4.2, 3.6) = 158.4
(3, 6) = 156

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Note:

An optimal solution to a LP problem will always occur at an extreme point of the feasible region.
If the slope of the iso-contribution line is not the same as the slope of any of the constraints,
then the optimal solution will be unique.
Special Cases

(1) Unbounded solution: An unbounded solution occurs whenever the feasible region is not
constrained from above, which results in an infinite feasible region. For example, the following
maximization problem is “unbounded from above,”
Max: Z = 1x + 9y
s.t.: x, y  0
It should be clear that no finite optimal solution exists for this problem. The objective function
value will consistently become larger with increases in x and/or y. Since both x and y are not
bounded from above, Z will approach infinity as x and/or y approaches infinity.
Graphically, an unbounded solution for a maximization problem can be detected whenever the
feasible region extends without limits upwards from the x and/or y axes assuming that the
objective function coefficients are positive.
An unbounded solution is usually the result of leaving out one or more constraints. In any case,
the problem needs to be reformulated by adding constraints that bound the feasible region in
order to get a finite solution.
(2) No feasible solution: The case of no feasible solution occurs whenever the feasible region is
an empty set (a set containing no points), which is due to conflicting constraint specification.
Obviously if the feasible region is empty, a feasible solution cannot be obtained. This case
usually arises due to an error in specification. It may also arise when the decision maker is
attempting to satisfy inconsistent constraints.
E.g Max: Z = 1.5x +10y
S.t. 1x +2y  100
1x + 2y  50
x, y  0
(3) Multiple optimal solutions: Multiple optimal solutions or “alternative optimal solutions” as
they are sometimes called, mean that there is more than one solution that is optimal, that is, “the

99
optimal solution is not unique.” This occurs whenever the slope of the iso-contribution line is the
same as the slope of one of the line segments connecting two extreme points in the feasible
regions. In this case, there will be an infinite number of optimal solutions; each point along this
line segment is an optimal solution.
As an example, consider the following maximization problem:
Max: Z = x + y
s.t.: x + y  100
X, y  0
THE BASIS THEOREM
Given a system of n consistent equations and υ variables, where υ > n, there will be an infinite
number of solutions. Fortunately, however, the number of extreme points is finite. The basis
theorem tells us that for a system of n equations and υ variables, where υ > n, a solution in which
at least υ − n variables equal zero is an extreme point. Thus by setting υ – n variables equal to
zero and solving the n equations for the remaining n variables, an extreme point, or basic
solution, can be found. The number N of basic solutions is given by the formula where

υ! Reads υ factorial

SLACK AND SURPLUS VARIABLES

Problems involving more than two variables are beyond the scope of the two-dimensional
graphic approach. Because equations are needed, the system of linear inequalities must be
converted to a system of linear equations. This is done by incorporating a separate slack or
surplus variable into each inequality in the system. A “less than or equal to” inequality such as
9x1 + 2x2 ≤ 86 can be converted to an equation by adding a slack variable s ≥ 0, such that 9x1 +
2x2 + s = 86. If 9x1 + 2x2 = 86, the slack variable s = 0.

If 9x1 + 2x2 < 86, s is a positive value equal to the difference between 86 and 9x1 + 2x2.
A “greater than or equal to” inequality such as 3y1 + 8y2 ≥ 55 can be converted to an equation by
subtracting a surplus variable s ≥ 0, such that 3y1 + 8y2 − s = 55. If 3y1 + 8y2 = 55, the surplus
variable s = 0.
If 3y1 + 8y2 > 55, s is a positive value equal to the difference between 3y1 + 8y2 and 55.

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Example
2x1 + x2 ≤ 14,
5x1 + 5x2 + ≤ 40
x1 + 3x2 + ≤ 18
2x1 + x2 + s1 = 14
5x1 + 5x2 + s2 = 40
X1 + 3x2 + s3 = 18

Expressed in matrix form

Recall the first maximization problem solved previously:
Max: Z = 40x + 45y
s.t.: x + y  600
x +1.5y  750
X  400
X, y 0
Slack variables represent the difference between how much of the resource is available and how
much is used. There should be one slack variable added to each structural constraint in the
problem, excluding the non-negativity constraint. Therefore, in this problem there are three slack
variables. Also, since slack variables measure the unused amount of each resource endowment in
the optimal solution, each of the structural constraints is now stated in terms of an equality (=)
rather than a weak inequality. For example, consider Constraint 1 of the problem above. To
represent the amount of unused resource 1, define slack variable 1 (s1), which equals:
s1 = 600 - x - y.

Rearranging this equation to put the constant on the RHS yields:

x +y + s1 = 600.
To include a slack variable for a  type constraint adds it to the constraint and replaces the 
restriction with an equality restriction.

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Since slack variables do not contribute to the objective function value, they are included as
activities in the objective function with zero objective function coefficients. The model with
slack variables is written as the following:
Max: Z = 40x + 45y +0s1 +0s2 +0s3-----------(0)
s.t.:
x + y + 1s1 = 600 ----------------- (1)
x +1.5y + 1s2 = 750---------------- (2)
x + 1s3 = 400 -------------------------(3)
X, y, s1, s2, s3  0---------------------(4)
This is called the standard form of the LP model. The difference between the general and
standard forms of an LP model is that the standard form includes slack variables (and/or surplus”
variables, and structural equality constraints, while the general form uses weak inequality
constraints and does not include slack (or surplus) variables. At the optimal solution, the values
of the slack variables are found by solving equations (1) through (3), given the values for x* and
y*, s1 * = 0, s2 * = 0, and s3 * = 100.
The slack variables can now be used to distinguish whether a constraint is binding or not. A
binding constraint is one where its slack variable is zero. A nonbinding constraint is one where
its slack variable is positive.
Another way to write the standard form of the model is using tableau form as shown below.

Equation x y S1 S2 S3 b
0 40 45 0 0 0 -
1 1 1 1 0 0 600
2 1 1.5 0 1 0 750
3 1 0 0 0 1 400
The activities are arranged as columns, and the last column is the resource endowment (b). The
first row contains the objective function coefficients. The rest of the rows correspond to the
constraints of the LP problem. Finally, the non-negativity constraint is not included in the
tableau, but is assumed. Alternatively, all zero coefficients could be left as blanks.

Simplex method
The simplex method is an algebraic method, which systematically finds an optimal solution to
the LP problem using iterative procedures. It is an iterative procedure because the simplex

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method uses basic steps that are repeated over and over again until an optimal solution is found
by certain criteria.

THE SIMPLEX METHOD FOR A SIMPLE MAXIMIZATION PROBLEM

Consider the following maximization problem expressed in standard form with slack variables
and equality constraints:
Max: Z = 35x1 + 50x2+ 0s1 + 0s2 + 0s3 ----------------------------(0)
s.t.: x1 + x2 + s1 = 1,000--------------------------------------------- (1)
2.5x1 + 0.75x2 + s2 = 1,500--------------------------------------- (2)
1.5x2 + s3 = 800---------------------------------------------------- (3)
X1, x2, s1, s2, s3  0----------------------------------------------- (4)
Constraints (1) through (3) form a system of three linear equations with five variables. Since this
system has more variables than equations, it cannot be solved using the simultaneous equation
approach. Instead, the simplex method uses an iterative procedure to get a solution for this
system by assigning zeros to two variables, and then solving for the remaining three variables.
More generally, when there are v variables and n constraints (v > n), then v - n variables are set to
zero, and the n constraints (equations) are solved for the remaining n variables. The solution to
this is called a basic solution.
For example, if we let x1 = 0 and s1 = 0, then the above system becomes:
x2 = 1,000-------------------------- (2.1)
0.75x2 + s2 = 1,500---------------- (2.2)
1.5x2 + s3 = 800 -------------------- (2.3)
From (2.1) we know that x2 = 1,000. Substituting (2.1) into (2.2) results in the solution for s2:
0.75(1,000) +s2 = 1,500, or s2 = 750.
Substituting (2.1) into (2.3) gives s3:
1.5(1,000) + s3 = 800, or s3 = - 700.
Hence, the basic solution when x1 = 0 and s1 = 0 is:
x1 = 0, x2 = 1,000, s1 = 0, s2 = 750, s3 = -700.
In general, the v - n variables set to zero are called non basic variables and the n (nonzero)
variables are called basic variables. In this example, x1 and s1 are the non basic variables and x2,
s2, and s3 are the basic variables for this basic solution.
A basic solution can either be feasible or infeasible.

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A basic feasible solution (BFS) satisfies all constraints, including non-negativity.
A basic infeasible solution violates at least one constraint.
Fact: A BFS always occurs at an extreme point of the feasible region.
A BFS and an extreme point are one and the same. Since we know that an extreme point will be
optimal (if any optimal solution exists), it seems reasonable to focus our attention on extreme
points. The simplex method is based on this observation. It examines a sequence of BFSs, based
on an iterative algorithm, until the optimal BFS is found.
The Simplex Tableau
The simplex method starts out by setting all “productive” activities to zero (i.e., the solution is
the origin), and a simplex tableau is formed to do the first iteration. All non slack and non
surplus activities (i.e., the xi’s) will be referred to as “productive” activities in the discussion that
follows. The first tableau is:

X1 X2 S1 S2 S3
Basis CB 35 50 0 0 0 b bi/aij
S1 0 1 1 1 0 0 1,000
S2 0 2.5 0.75 0 1 0 1,500
S3 0 0 1.5 0 0 1 800
Zj
Net eval (Cj- Zj)

Comments on Columns
1. The basis column includes all the basic variables. In the first iteration, the non basic variables
are the productive activities (x1 = x2 = 0), and the basis therefore consists of the three slack
variables s1, s2, and s3.
2. The CB column contains the objective function coefficients for the basic variables. CB stands
for the contribution of the current basis. Since the basic variables in the first iteration are all slack
variables, s1, s2, and s3 = 0.
3. Columns x1, x2, s1, s2, and s3 are the activities and slack variables to the problem. They include
the basic and non basic variables.
4. The b column contains the right-hand-side (RHS) values (resource endowments) of the
problem.

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5. The bi/aij column will be used to determine the pivot row, as will be explained later.
6. Note that the columns associated with the basic variables (s1, s2, and s3 in this case) look like
an identity matrix (1’s on the diagonal and 0’s in the off diagonal).
Each of these columns is known as a unit column or unit vector. It is desirable to always have
all basic variables forming unit vectors for the following reason:
When all basic variables are unit vectors, the solution for each basic variable is given by the
value under the resource endowment b column associated with row i in the simplex tableau.
Comments on Rows

1 The first row under the activities row contains the objective function coefficients for the
basic and non basic variables.
2. The next three rows correspond to the constraints of the problem. It is identical to the LP
problem above, only expressed in tableau form.
3. The last two rows are called the zj and cj _ zj rows.
The zj and cj _ zj Rows
The zj and cj _ zj rows provide a criterion for selecting which non basic variable, if any,
should enter the next solution in order to increase the value of the objective function.
There are two contrasting effects that bringing a non basic variable into the new basis
will have on the value of the objective function.
1. Direct Rate of Increase.
The objective function will increase at a rate of c i per unit of xi forced into the basis,
where xi is a non basic variable and ci is its objective function coefficient.
2. Indirect Rate of Decrease.
The objective function will decrease owing to a downward adjustment in the current basic
variables due to bringing a non basic variable into the solution. The zj row measures this
indirect rate of decrease for each non basic variable. The net effect of the direct rate of
increase and the indirect rate of decrease in the objective function for each non basic
variable is measured by the cj _ zj row.

MAXIMIZATION
The simplex algorithm method for maximization is explained below in four easy steps, using the
following concrete example:

105
 Maximize π = 8x1 + 6x2
Subject to 2x1 + 5x2 ≤ 40
3x1 + 3x2 ≤ 30
8x1 + 4x2 ≤ 64
x1, x2 ≥ 0

I. The Initial Simplex Tableau (or Table)

1. Convert the inequalities to equations by adding slack variables.

2x1 + 5x2+s1 = 40
3x1 + 3x2 +s2 = 30
8x1 + 4x2 +s3 = 64

2. Express the constraint equations in matrix form

3. Set up an initial simplex tableau which will be the framework for the algorithm. The initial
tableau represents the first basic feasible solution when x1 and x2 equal zero. It is composed of
the coefficient matrix of the constraint equations and the column vector of constants set above
a row of indicators which are the negatives of the coefficients of the decision variables in the
objective function and a zero coefficient for each slack variable. The constant column entry in
the last row is also zero, corresponding to the value of the objective function when x1 and x2
equal zero. The initial simplex tableau is as follows:

106
4. By setting x1 = x2 = 0, the first basic feasible solution can be read directly from the initial
tableau: s1 = 40, s2 = 30, and s3 = 64. Since x1 and x2 are initially set equal to zero, the objective
function has a value of zero.
II. The Pivot Element and a Change of Basis
To increase the value of the objective function, a new basic solution is examined. To move to
a new basic feasible solution, a new variable must be introduced into the basis and one of the
variables formerly in the basis must be excluded. The process of selecting the variable to be
included and the variable to be excluded is called change of basis.
1. The negative indicator with the largest absolute value determines the variable to enter the
basis. Since −8 in the first (or x1) column is the negative indicator with the largest absolute value,
x1 is brought into the basis. The x1 column becomes the pivot column and is denoted by an arrow.
2. The variable to be eliminated is determined by the smallest displacement ratio. Displacement
ratios are found by dividing the elements of the constant column by the elements of the pivot
column. The row with the smallest displacement ratio, ignoring ratios less than or equal to zero,
64
becomes the pivot row and determines the variable to leave the basis. Since provides the
8
64 30 40
smallest ratio ( < < ), row 3 is the pivot row. Since the unit column vector with 1 in the
8 3 2
third row appears under the s3 column, s3 leaves the basis. The pivot element is 8, the element at
the intersection of the column of the variable entering the basis and the row associated with the
variable leaving the basis (i.e., the element at the intersection of the pivot row and the pivot
column).

107
 III. Pivoting
Pivoting is the process of solving the n equations for the n variables presently in the basis. Since
only one new variable enters the basis at each step of the process and the previous step always
involves an identity matrix (although the columns are often out of normal order), pivoting simply
involves converting the pivot element to 1 and all the other elements in the pivot column to zero,
as in the Gaussian elimination method of finding an inverse matrix, as follows:
1. Multiply the pivot row by the reciprocal of the pivot element. In this case, multiply row 3 of the
1
initial tableau by :
8

2. Having reduced the pivot element to 1, clear the pivot column. Here subtract 2 times row 3 from

row 1, 3 times row 3 from row 2, and add 8 times row 3 to row 4. This gives the second tableau:

The second basic feasible solution can be read directly from the second tableau. Setting equal to
zero all the variables heading columns which are not composed of unit vectors (in this case x2 and

108
s3), and mentally rearranging the unit column vectors to form an identity matrix, we see that s1 =
24, s2 = 6, and x = 8. With x1 = 8, π = 64, as is indicated by the last element of the last row.
IV. Optimization
The objective function is maximized when there are no negative indicators in the last row.
Changing the basis and pivoting continue according to the rules above until this is achieved.
Since −2 in the second column is the only negative indicator, x2 is brought into the basis and
column 2 becomes the pivot column. Dividing the constant column by the pivot column shows
3
that the smallest ratio is in the second row. Thus, becomes the new pivot element. Since the
2
unit column vector with 1 in the second row is under s2, s2 will leave the basis. To pivot,
perform the following steps:

2
1. Multiply row 2 by, .
3

1
2. Then subtract 4 times row 2 from row 1, times row 2 from row 3, and add 2 times row 2 to
2
row 4, deriving the third tableau:

109
Setting all the variables heading non-unit vector columns equal to zero (i.e., s2 = s3 = 0), and
mentally rearranging the unit column vectors to form an identity matrix, we see that s1 = 8, x2 =
4, and x1 = 6. Since there are no negative indicators left in the last row, this is the optimal
solution. The last element in the last row indicates that at x 1 = 6 and x2 = 4, s1 = 8, s2 = 0, and s3 =
0, the objective function reaches a maximum at  = 72.
Example 2
Maximize π = 50x1 + 30x2
Subject to 2x2 + x2 ≤ 14
5x1 + 5x2 ≤ 40
x1 + 3x2 ≤ 18
x1, x2 ≥ 0
1. Construct the initial simplex tableau.
(a) Add slack variables to the inequalities to make them equations.
2x1 + x2 + s1 = 14
5x1 + 5x2 + s2 = 40
x1 + 3x2 + s3 = 18
(b) Express the constraint equations in matrix form.

(c) Form the initial simplex tableau composed of the coefficient matrix of the constraint
equations and the column vector of constants set above a row of indicators which are the
negatives of the coefficients of the objective function and zero coefficients for the slack
variables. The initial tableau is

110
Setting x1 = x2 = 0, the first basic feasible solution is s1 = 14, s2 = 40, and s3 = 18. At the first
basic feasible solution, π = 0.
2. Change the basis. The negative indicator with the largest absolute value (arrow) determines
the pivot column. The smallest displacement ratio arising from the division of the elements of the
constant column by the elements of the pivot column decides the pivot row. Thus 2 becomes the
pivot element, the element at the intersection of the pivot row and the pivot column.
3. Pivot.
1
(a) Convert the pivot row to 1 by multiplying row 1 by .
2

(b) Clear the pivot column by subtracting 5 times row 1 from row 2, row 1 from row 3, and
adding 50 times row 1 to row 4.
The second tableau is

111
 5
4. Change the basis and pivot again. Column 2 is the pivot column, row 2 is the pivot row, and
2
is the pivot element.
2
(a) Multiply row 2 by .
5

1 2
(b) Clear the pivot column by subtracting times row 2 from row 1, times row 2 from row 3
2 5
and adding 5 times row 2 to row 4. The third tableau is

With no negative indicators left, this is the final tableau. Setting the variables (s1 and s2) above
non-unit column vectors equal to zero, and rearranging mentally to form the identity matrix, we
see that x1 = 6,x2 = 2, s1 = 0,s2 = 0,s3 = 6, and  = 360. The shadow prices of the inputs are 20,
2, and 0, respectively.

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Example 3.
Maximize
π = 56x1 + 24x2 + x3
Subject to 4x1 + 2x2 + 3x3 ≤ 240
8x1 + 2x2 + x3 ≤ 120
x1, x2, x3 ≥ 0
Add slack variables and express the constraint equations in matrix form.
4x1 + 2x2 + 3x3 + s1 = 240
8x1 + 2x2 + x3 + s2 = 120

Then set up the initial tableau:

113
 1
Then change the basis and pivot, as follows. (1) Multiply row 2 by .
8

(2) Clear the pivot column by subtracting 4 times row 2 from row 1 and adding 56 times row 2 to
row 3. Set up the second tableau:

2
Change the basis and pivot again. (1) Multiply row 1 by .
5

1
(2) Clear the pivot column by subtracting times row 1 from row 2 and adding 11 times row 1
8
to row 3. Set up the third tableau:

114
Since there is still a negative indicator, pivot again. Multiply row 2 by 5.

2 28
Subtract times row 2 from row 1 and add times row 2 to row 3. Set up the final tableau:
5 5

Here x1 = 0, x2 = 30, x3= 60, s1= 0, s2= 0, and = 1800.

THE DUAL
Every minimization problem in linear programming has a corresponding maximization problem,
and every maximization problem has a corresponding minimization problem. The original
problem is called the primal; the corresponding problem is called the dual. The relationship
between the two can most easily be seen in terms of the parameters they share in common. Given
an original primal problem.
Minimize
c = g1y1 + g2y2 + g3y3
Subject to

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a11y1 + a12y2 + a13y3 ≥ h1
a21y1 + a22y2 + a23y3 ≥ h2
a31y1 + a32y2 + a33y3 ≥ h3
y1, y2, y3 ≥ 0
The related dual problem is
Maximize
π = h1x1 + h2x2 + h3x3
Subject to
a11x1 + a21x2 + a31x3 ≤ g1
a12x1 + a22x2 + a32x3 ≤ g2
a13x1 + a23x2 + a33x3 ≤ g3
X1, x2, x3 ≥ 0
RULES OF TRANSFORMATION TO OBTAIN THE DUAL
In the formulation of a dual from a primal problem,
1. The direction of optimization is reversed. Minimization becomes maximization in the dual and
vice versa.
2. The inequality signs of the technical constraints are reversed, but the non negativity
constraints on decision variables always remain in effect.
3. The rows of the coefficient matrix of the constraints in the primal are transposed to columns
for the coefficient matrix of constraints in the dual.
4. The row vector of coefficients in the objective function in the primal is transposed to a column
vector of constants for the dual constraints.
5. The column vector of constants from the primal constraints is transposed to a row vector of
coefficients for the objective function in the dual.
6. Primal decision variables xi or yi are replaced by the corresponding dual decision variables yi
or xi.

116