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2. (12 points) Consider the following supply and demand system 15 p = 8 -93 (S) p = 10 WIN (D) This economy is represented
2. (12 points) Consider the following supply and demand system 15 p = 8 -93 (S) p = 10 WIN (D) This economy is represented by the matrix equation below. Ax = b where x = ] . b = 0 10 a) (2 points) Fill in the values for A. A = b) (3 points) Without solving the system, confirm that the economy has exactly one equilibrium. c) (2 points) Comment on the following solution for the equilibrium. Ax = b AxA-1 = bA-1 post-multiply by inverse AA x = bA-1 rearrange left hand side x = bA-1 cancel out A and A-1 d) (5 points) Calculate consumer surplus at the equilibrium
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