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30 Pages

### cn_1_matrix_1

Course: ECN 470, Fall 2009
School: ASU
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Word Count: 2470

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Matrix 1. Algebra and Linear Economic Models References Ch. 1 3 (Turkington); Ch. 4 5.2 (Klein). [1] Motivation One market equilibrium Model Assume perfectly competitive market: Both buyers and sellers are price-takers. Demand: Qd = a + bP , a &gt; 0, and b &lt; 0. Supply: Q a S Qs = c + dP , c 0 and d &gt; 0. D P -c/d c -a/b Linear Models-1 Production occurs only if -c/d &lt; -a/b:...

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