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**Unformatted text preview: **are all positive, and s i > e i . a ) What system oF equations do you get when you set supply equal to demand in both markets? b ) What criterion must be met in order to solve For p 1 and p 2 ? c ) What additional conditions must be satisfed in order to get positive equilibrium prices p i ? 5. (Bases) Suppose x = (1 , 3 , 7) T . Consider the basis B = { b 1 , b 2 , b 3 } where b 1 = (1 , 1 , 0) T , b 2 = (0 , 2 , 4) T , and b 3 = (0 , 3 , 9) T . ±ind the coordinates oF x in the basis B (i.e., fnd α 1 , α 2 , and α 3 with α 1 b 1 + α 2 b 2 + α 3 b 3 = x ....

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- Fall '08
- STAFF
- Economics, Linear Systems, Natural number, mathematical economics midterm