Question

a) Solve for the equilibrium prices in the 2 good market model below using the matrix

inversion approach.

(b) Solve for the equilibrium prices in the 2 good market model below using Cramer’s

Rule.

Qd1= 92-4P1+2P2 (1)

Qs1= -6+32P1 (2)

Qd1=Qs1 (3)

Qd2= 82+P1-3P2 (4)

Qs2= -5+15P2 (5)

Qd2=Qs2 (6)

Answer #1

Use a matrix method to find the equilibrium prices and
quantities where the supply and demand functions for Good 1, Good 2
and Good 3 are as
Qd1 = 50 − 2P1 + 5P2 − 3P3, Qs1 = 8P1 − 5
Qd2 = 22 + 7P1 − 2P2 + 5P3, Qs2 = 12P2 − 5
Qd3 = 17 + P1 + 5P2 − 3P3, Qs3 = 4P3 − 1

Storage Equilibrium
Assume that the market supply curve for potatoes is
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periods for the crop. In the first marketing period the demand
curve is: QD1 = 24 – P1, in the second period
it is: QD2= 18 - P2.
Draw a graph of the markets in the two periods showing prices
and quantities if it costs nothing to store potatoes. Be sure to
label all the relevant features on...

Assume that the market supply curve for potatoes is
QS1 = 12+0.5P, and that there are two marketing periods
for the crop. In the first marketing period the demand curve is:
QD1 = 24-P1, in the second period it is:
QD2 = 18-P2.
1. Draw a graph of the markets in the two periods showing prices
and quantities if it costs nothing to store potatoes. Be sure to
label all the relevant features on your graph. Insert an
image of...

1. Graphically solve the model formulated below using
GRAPH PAPER!!!!!
2. Calculate the slack on each constraint.
Formulation:
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Solve the following matrix game by using simplex method.
A/B
1
2
3
1
6
1
2
2
1
4
1
3
3
4
5
a) What is the real price of the game?
b) What are the optimal probabilities for player A’s
strategies?
c) What are the optimal probabilities for player B’s
strategies?
Please show your workings, not just the answer, thank you!

This question will ask you to solve for the equilibrium price
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Portfolio Analysis Problem (Excel Spreadsheet)
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Answer Questions 2 and 3 based on the following LP
problem.
Let P1 = number of Product 1 to be
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P2 =
number of Product 2 to be produced
P3 =
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Maximize 100P1 + 120P2 +
90P3 Total
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Instructions:
The assignment is based on the mini case below. The instructions
relating to the assignment are at the end of the case.
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