Supply-and-demand analysis can also involve more than two interrelated markets. Use the elimination method to find Pe

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Supply-and-demand analysis can also involve more than two interrelated markets. Use the elimination method to find Pe and Qe for each of the three markets, given the system of equations:image text in transcribed

For equilibrium in each market,image text in transcribed

This leaves three equations with three unknowns:image text in transcribed

To solve a 3 × 3 system, the following hints generally prove helpful: (1) using any two of the equations, eliminate one of the three variables; (2) then, using the third equation and either of the others already used, eliminate the same variable as before; (3) this will leave two equations with two unknowns, which can then be solved by now familiar methods, as shown below.
(1) Selecting P2 for elimination and multiplying (4.44) by 2,image text in transcribed

Subtracting (4.47) from (4.46),image text in transcribed

(2) Now multiplying (4.46) by 3,image text in transcribed

and adding it to (4.45), the previously unused equation,image text in transcribed

(3) This leaves two equations with two unknowns:image text in transcribed

which can be solved with earlier methods, givingimage text in transcribed

Then substituting P1 = 4, P3 = 6 in (4.44), (4.45), or (4.46),image text in transcribed

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