Chiang/Wainwright: Fundamental Methods of Mathematical Economics

Instructor;s Manual

CHAPTER 4
Exercise 4.1
1.

Coe

Qd

Qs

Qd

+bP
Qs

dP

cient M atrix:

Vector of Constants:

=0

=a

2.
Qd1

Qs1

=0

Qd1
Qs1
Qd2

a1 P1

a2 P2

= a0

b1 P1

b2 P2

= b0

Qs2

=0

Qd2
Qs2
Coe

cient m atrix:

1 P1

2 P2

1 P1

2 P2

Variable vector:

Constant vector:

1 0

Qd1

0 0

a1

a2

Qs1

a0

1 0

b1

b2

Qd2

b0

0 1

Qs2

0 1

P1

0 0

P2

3. No, because the equation system is nonlinear

4.
Y

bY + C

= I0 + G0
= a

The coe cient matrix and constant vector are

1

I0 + G0

13

Chiang/Wainwright: Fundamental Methods of Mathematical Economics

5. First expand the multiplicative expression (b(Y

that bY and

Instructor;s Manual

T ) into the additive expression bY

bT can be placed in separate columns. Then we can write the system as

Y

bY

+bT

tY

+T

+C

= I0 + G0
=a
=d

Exercise 4.2

1.

(a)

7 3

(b)

9 7

(c)

21

18

27

(d)

16

22

24

2.
28 64
(a) Yes AB =

. No, not conformable.

13 8
(b) Both are dened, but BC =

14

6= CB =

69 30
1
5

3. Yes. BA =

3+
2
5

12
10
1
5

0
28
10

3
5

2+

6
10
3
5

20 16
21 24
1 0 0

14
10

0 1 0

6
2
0 0 1
0
5
10
Thus we happen to have AB = BA in this particular case.

0
4.

(a)

36 20
16

4
10

(b)

49 3
4 3

3x + 5y

(c)

4x + 2y

(22)

(d)
7z

(21)

(32)

5. Yes. Yes.

Yes. Yes.

6.
(a) x2 + x3 + x4 + x5
(b) a5 + a6 x6 + a7 x7 + a8 x8
(c) b(x1 + x2 + x3 + x4 )
(d) a1 x0 + a2 x1 + + an xn

= a1 + a2 x + a3 x2 + + an xn
14

7a + c 2b + 4c
(12)

bT so

Chiang/Wainwright: Fundamental Methods of Mathematical Economics

Instructor;s Manual

(e) x2 + (x + 1)2 + (x + 2)2 + (x + 3)2

7.

(a)

3
P

ixi (xi

1)

(b)

i=1

8.
(a)
(b)

n
P

4
P

ai (xi+1 + i)

(c)

i=2

xi

i=1

n
P

i=1

1
xi

+ xn+1 = x0 + x1 + + xn + xn+1 =
n
X

abj yj

(d)

n
P

i=0

n+1
P

1
xi

xi

i=1

= ab1 y1 + ab2 y2 + + abn yn

j=1

= a(b1 y1 + b2 y2 + + bn yn ) = a

n
X

bj yj

j=1

(c)
n
X
(xj + yj ) = (x1 + y1 ) + (x2 + y2 ) + + (xn + yn )
j=1

= (x1 + x2 + + xn ) + (y1 + y2 + + yn )
n
n
X
X
=
xj +
yj
j=1

j=1

Exercise 4.3
1.
5
0

(a) uv =

1
3
5

(b) uw0 =

1
3
x1

(c) xx =

x2
x3

(d) v u =

3 1

3 1

h
h

5 7 8

x1

x2

x3

15 5

35 25 40
=

21 15 24

x21

x1 x2

x1 x3

x2 x1

x22

x2 x3

x3 x1

x3 x2

x23

5
1

= [15 + 1

3] = [44] = 44

3
15

Chiang/Wainwright: Fundamental Methods of Mathematical Economics

(e) u v =

(f) w x =

(g) u0 u =

(h) x x =

h
h
h
h

7 5 8

5 1 3

x1

5 1 3

x2

x3

Instructor;s Manual

= [15 + 1

3] = 13

1
x1
= [7x1 + 5x2 + 8x3 ] = 7x1 + 5x2 + 8x3

x2
x3
5

= [25 + 1 + 9] = [35] = 35

1
3

x1

P
= x21 + x22 + x23 =
x2i

x2

i=1

x3

2.
(a) All are dened except w0 x and x0 y 0 .
x1

(b) xy 0 =

xy 0 =

x2
h

zz 0 =

yw0 =

y1

y2

z1

z2
y1

y1

y2

y1

z1

z2

x1 y2

x2 y1

x2 y2

= y12 + y22

y2
i

3 2 16

y2
x y = x1 y1 + x2 y2

x1 y1

z12

z1 z2

z2 z1

z22

3y1

2y1

16y1

3y2

2y2

16y2

3.
(a)

n
P

Pi Qi

i=1

(b) Let P and Q be the column vectors or prices and quantities, respectively. Then the total
revenue is P Q or P 0 Q or Q0 P .

16

Chiang/Wainwright: Fundamental Methods of Mathematical Economics

Instructor;s Manual

4.
(a) w10 w2 = 11 (acute angle, Fig. 4.2c)
(b) w10 w2 =

11 (obtuse angle, Fig. 4.2d)

(c) w10 w2 =

13 (obtuse angle, Fig. 4.2b)

(d) w10 w2 = 0 (right angle, Fig. 4.3)

(e) w10 w2 = 5 (acute angle, Fig. 4.3)
5.

(a) 2v =

(b) u + v =

6
(d) v u =

(c) u

v=

4
5

(e) 2u + 3v =

(a) 4e1 + 7e2

(b) 25e1

(c)

(d) 2e1 + 8e3

e1 + 6e2 + 9e3

5
2

10

(f) 4u

2v =

20
2

11

2
6.

2e2 + e3

7.
p
(3
p
(b) d = (9
(a) d =

0)2 + (2 + 1)2 + (8
2)2 + 0 + (4 + 4)2 =

5)2 =

27

113

8. When u, v, and w all lie on a single straight line.

9. Let the vector v have the elements (a1 , . . . , an ). The point of origin has the elements (0, . . . , 0).
Hence:
(a)

d(0, v) = d(v, 0)

(b) d(v, 0) = (v 0 v)1/2

p
(a1 0)2 + . . . + (an
p
= a21 + . . . + a2n
=

0)2

[See Example 3 in this section]

(c) d(v, 0) = (v v)1/2

Exercise 4.4
1.
(a) (A + B) + C = A + (B + C) =

17

11 17
17