4. Consider below the system of equations for the demand (QD) for and supply (Qs) of piano lessons (Note: we already assume below that Qp = Qs = Q in equilibrium; P denotes the price of lessons in dollars; e, f, h> 0 and g ≤0 are constants): (Q=e-fP 1Q=g+hP (demand) (supply) (system 4. A). 4.1. Let x = = [R] (To emphasize: You are required to set up x in this manner.). Transform system 4. A above into the matrix equation Ax = b. 4.2. Using your Ax=b equation in item 4.1 and matrix inversion, find the equilibrium price P* and the equilibrium quantity of lessons sold Q" when e = 100, f = 2, h = 3, and g = 0. 1.3. Using your answer in item 4.2, find the equilibrium price faced by consumers and sellers (Please do not overthink this item.).

4. Consider below the system of equations for the demand (QD) for and supply (Qs) of piano lessons (Note: we already assume below that Qp = Qs = Q in equilibrium; P denotes the price of lessons in dollars; e, f, h> 0 and g ≤0 are constants): (Q=e-fP 1Q=g+hP (demand) (supply) (system 4. A). 4.1. Let x = = [R] (To emphasize: You are required to set up x in this manner.). Transform system 4. A above into the matrix equation Ax = b. 4.2. Using your Ax=b equation in item 4.1 and matrix inversion, find the equilibrium price P* and the equilibrium quantity of lessons sold Q" when e = 100, f = 2, h = 3, and g = 0. 1.3. Using your answer in item 4.2, find the equilibrium price faced by consumers and sellers (Please do not overthink this item.).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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