REDUCED MATRIX

A matrix is said to be a reduced matrix provided that all of the following are true:
1) All zero-rows are at the bottom of the matrix.
2) For each nonzero-row, the leading entry is 1, and all other entries in the column of
the leading entry are 0.
3) The leading entry in each row is to the right of the leading entry in any row above
it.

Example reduced matrix:

0 1 0 3 
1 0 1 0 0   0 0 0 
0 1  0 1 0  0 0 1 2  0 0 0 
     
0 0 0 0
Example not a reduced matrix:
1 0 0
1 0 0 1  
0 3 1 0 0 0 0
  
0 1 0

Elementary row operations are used to reduce a matrix.

Elementary row operations Notation Example
3  1
1. Interchanging two rows of a Ri  Rj  1 2
matrix  
 1 2
R1  R 2  
3  1
 1 2
2. Add k times row Ri to row Rj kRi + Rj 3  1
(but leave Ri unchanged)  
1 2
 3R1  R 2  
0  7 
1 2
3. Multiplying a row of a kRi 0  7 
matrix by a nonzero number  
1  1 2
 R2
7 0 1

1
Example: Reduce the given matrices.

0 0 1 2  3  6  3 0
 3  6  3 0 R1  R 2 0 0 1 2
   
6  12 2 11 6  12 2 11

 1  2  1 0
1
R1 0 0 1 2
3 
6  12 2 11

 1  2  1 0
 6R1  R 3 0 0 1 2
 
0 0 8 11

1  2 0 2
(1)R 2  R1 0 0 1 2
 
0 0 0  5
–8R2 + R3
 1  2 0 2
 1
R 0 0 1 2
5 3  
0 0 0 1

 1  2 0 0
 2 R 3  R1 0 0 1 0
  (Reduced matrix)
–2R3 + R2 0 0 0 1
MATRIX INVERSE

If A is a square matrix A and there exist a matrix (A-1)such that AA-1 = A-1A = I where
|A| 0, then matrix A-1 is called an inverse of A. A is also said to be nonsingular or
invertible.

Methods to obtain the inverse of a matrix:

(i) using elementary row operations
(ii) using adjoint dan determinant

2
(i) Using elementary row operations
1 2
Example : Find A-1 where A =  
3 7 

[ M | I ]  …  [ I | M-1 ]

1 2 1 0 using elementary row operations  1 0 ? ?

   
3 7 0 1 0 1 ? ? 

1 2 1 0
 3R1  R 2  
0 1  3 1
1 0 7  2
 2 R2  R1  
0 1  3 1

 7  2
 A 1  
 3 1

(ii) Using adjoint and determinant method

1
A 1  Adj A where Adjoint A = Adj A = [Cij] T
A

Example:
1 2 3   13 10  22 
A  2 4 3 
Cij    5  14 11
6 1 4  6 3 0
 13  5  6
Adj A  Cij   10  14
T
3
 22 11 0

| A | = –33
 13  5  6  1333 5
33
6
33 
1   
3   3310
1 1
A  Adj A  10  14 14 3

A  33  33 33
 22 11 0  2233
11
33 0 
.

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Properties of an Inverse Matrix
If A and B are nonsingular (invertible) matrices
(A-1)-1 = A
1
A 1 
A

(AT)-1 = (A-1)T
(AB)-1 = B-1 A-1

Linear Dependent Vectors and Rank

Matrix consists of few row vectors and column vectors. The rank of matrix is the maximal
linearly independent row/column vectors. A matrix is said to be full rank if all rows and
columns are linearly independent.
1 3
Example: A   2  6

 2 6 

1
row 1 + row 2 = 0
2
1
row 1 - row 3 = 0
2
row 2 + row 3 = 0
1
column 1 - column 2 = 0
3
Only 1 row/column vector is linearly independent. ∴ r(A)=1

Linear dependent vectors: Two vectors a1 and a2 are linear dependent iff there exists a set
of real numbers 1 and 2 , not all zero, such that a11  a 2  2  0 . If no such set of

1 dan  2 unless all zeros, then a1 dan a2 are said to be linearly independent.

Rank of matrix A [r(A)] is the number of linearly independent row/column vectors where
r ( A)  min( m, n)

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Finding the rank of a matrix using determinants:

Submatrix - the matrix itself

- matrix after deleting one @ more rows
- matrix after deleting one @ more columns
- matrix after deleting one @ more rows and columns

1  1  3
Given A 
3 2  6
1  1 1  3   1  3
Examples of submatrix A 3 2  3  6  2  6
     
1  1  3 3 2  6

1  1   3
3  2   6 2  6
     
1  1
For matrix A, r(A) is the order of the largest non-zero determinant square submatrix.

Example: Find the rank of the matrix B

 5 9 3
B33   2 12  4
 3  18 6
5 9 3 5 9
B  2 12  4 2 12  0
 3  18 6 3  18

5 9
Submatrix B 22   60  (18)  78  0
2 12

 r(B) = 2

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Example: Find the rank of the matrix C
 8 2  6
C33   10  2.5 7.5

 24  6 18

8 2 6 8 2
C  10  2.5 7.5 10  2.5  0
24 6 18 24 6

8 2
Submatrix C 22   20  20  0
10  2.5
10  2.5
 60  (60)  0
24 6
2 6
 15  15  0
 2 .5 7 .5
 2 .5 7 .5
 45  (45)  0
6 18
8 6
 144  (144 )  0
24 18

Submatrix C 11 | 8 | 8  r(C) = 1

Example: Find the rank of the matrix D

 4 10 
D3x 2  14 22 
 6 2 

r ( D)  min( 3,2)
r ( D)  2

4 10
Submatrix D 2X 2   88  140  52  0
14 22
 r(D) = 2

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Solution for Systems of Linear Equations
x1  2 x 2  x3  10
Given 2 x1  4 x 2  2 x3  5
x1  x 2  x3  6
AX  b
1 2  1   x1  10 
 2 4  2  x    5 
  2   
1 1 1   x3   6 

1 2  1  1 2  1 10 
Coefficient Matrix=  A  2 4  2 Augmented matrix  A b   2 4  2 5 
 
1 1 1  1 1 1 6 

Given the linear system AX = b and the augmented matrix A b :

1. If r(A|b)=r(A) The system is consistent and solution exists.

2. If r(A|b)=r(A)=n (number of unknowns) The system has a unique solution.
3. If r(A|b)=r(A)<n (number of unknowns) The system has infinite solutions.
4. If r(A|b) r(A) The system is inconsistent and solution does not exist.

Example:
x  2y  z  0 1 2  1  1 2  1 0 
2x  2z  5 Matrix A = 2 0  2 Matrix A|b = 2 0  2 5
x y 6 1 1 0  1 1 0 6

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 1 2 1
A  2 0  2  4  0
1 1 0
 r ( A)  3

r ( A b)  min( 3,4)
r ( A b)  3
1 2 1
A | b  submatriks A | b 3 X 3  2 0  2  4  0
1 1 0
 r ( A b)  3

Since r ( A)  r ( A | b)  n  3 , the system has a unique solution.

Example:

x  3y  2 1 3 1 3 2
Matrix A =   Matrix A|b =  
 2 x  6 y  4   2  6   2  6  4

1 3
A 0
2 6
Submatrix A 1 X 1  1  1  0
 r ( A)  1

r ( A | b)  min( 2,3)
r ( A | b)  2
1 3 1 2 3 2
Submatrix A | b 2 X 2    0
2 6 2 4 6 4

Submatrix A | b 1 X 1  1  1  0

 r ( A | b)  1

Since r ( A)  r ( A | b)  1  2 ,the system has infinite solutions.

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Example:
x  2 y  z  10 1 2  1  1 2  1 10 
2x  4 y  2z  5 Matrix A = 2 4  2 Matrix A|b = 2 4  2 5 
x yz 6 1 1 1  1 1 1 6 
1 2 1
A  2 4 2 0
1 1 1
2 4
Submatrix A 2 X 2   2  0
1 1
r(A) = 2

r ( A b)  min( 3,4)
r ( A b)  3
1 2 10
Submatrix A | b 3 X 3  2 4 5  15  0
1 1 6
 r ( A | b)  3
Since r(A) r(A|b), the system is inconsistent and solution does not exist.

SOLVING SYSTEMS OF EQUATIONS

Three methods to solve systems of equations:

Method 1 : by reduction
Method 2 : by inverse matrix
Method 3 : by Cramer’s rule

METHOD 1: BY REDUCTION
3x – y = 1
x + 2y = 5
(i) Express the system of equations in matrix form AX = B
3  1  x  1 
 1 2  y   5
    

9
(ii) Reduce the augmented matrix
3  1 1 3x  y  1
 
 1 2 5 x  2y  5

 1 2 5 x  2y  5
R1  R 2  
3  1 1 3x  y  1

1 2 5 x  2y  5
 3R 1  R 2  
0  7  14 0x  7 y  14

1 1 2 5 x  2y  5
 R2  
7 0 1 2  0x  y  2

1 0 1 x  0y  1
 2R 2  R 1  
0 1 2 0x  y  2
(iii) Find the values for x and y
x=1 y=2

METHOD 2: BY INVERSE MATRIX

A system of n linear equations in n unknowns has a unique solution if and only if the
coefficient matrix (A) is invertible. When the coefficient matrix is not invertible, the system
will have either no solution or infinitely many solutions.
AX = B
A-1AX = A-1B
IX = A-1B
X = A-1B
Steps:
(i) Express the system of equations in matrix form AX = B
(ii) Find A-1 (using elementary row operations or by adjoint and determinant method)
(iii) Solution: X = A-1B
Example:
x1 + 2x2 = 5
3x1 + 7x2 = 18

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Express the system of equations in matrix form AX = B
1 2  x1  5 
3 7  x   18
   2  
1 2  x1  5 
A  X  B 
3 7 x 2  18
Find A-1
1 2 1 0
 
3 7 0 1
[ M | I ]  …  [ I | M-1 ], using elementary row operations
1 2 1 0
 
3 7 0 1
1 2 1 0
 3R1  R 2  
0 1  3 1
1 0 7  2
 2 R3  R1  
0 1  3 1

 7  2
A 1  
 3 1

Solution
 7  2 5 
X  A1 B  
 3 1 18
 
x1  (7)(5)  (2)(18)
 35  36  1
x2  (3)(5)  (1)(18)
 15  18  3
Example:
x1 – 2x3 = 1
4x1 – 2x2 + x3 = 2
x1 + 2x2 – 10x3 = –1
Express the system of equations in matrix form AX=B

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 1 0  2  x1   1
4  2 1  x    2
  2  
 1 2  10   x 3   1

Find A-1
2 1
M11   20  2  18 C11  (1)1118  18
2  10
M12 = = = –41 C12 = = 41
M13 = = = 10 C13 = = 10
M21 = = =4 C21 = = 4
M22 = = = –8 C22 = = 8
M23 = = =2 C23 = = 2
M31 = = = –4 C31 = = 4
M32 = = =9 C32 = = 9
M33 = = = –2 C33 = = 2

 18 41 10  18  4  4
Cij   4  8  2 Adj A  C  41  8  9
T

 4  9  2 10  2  2

| A | = 1(18) + 0(41) – 2(10) = –2 (expansion row 1 in Cij)

18  4  4
Adj A   41  8  9
1 1
 1
A 
A 2
10  2  2

  9 2 2
  41
2
4 92 
  5 1 1

Solution

 x1    9 2 2  1   7 
 x   A1 B   41 4 9   2   17 
 2  2 2    
 x3    5 1 1  1   4

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METHOD 3: BY CRAMER’S RULE

A matrix approach used to solve systems of equations without having to calculate matrix
inverse but rather using determinants.
x1  x 2  x3  6
Example: 3x1  4 x 2  2 x3  2
2 x1  5 x 2  x3  0
(i) Express the system of equation in matrix form AX = B
1 1  1  x1   6
 3  4 2  x     2
   2  
2 5 1  x3   0

(ii) Find determinant A |A|=

1 1 1 1 1 1 1 1
  3 4 2  3 4 2 3  4   36
2 5 1 2 5 1 2 5

(iii). Replace first column in A with B and find its determinant 1

6 1 1 6 1 1 6 1
1   2  4 2  2 4 2  2  4   72
0 5 1 0 5 1 0 5

(iv) Replace second column in A with B and find its determinant 2

1 6 1 1 6 1 1 6
2  3  2 2  3 2 2 3 2  0
2 0 1 2 0 1 2 0

(v) Replace third column in A with B and find its determinant 3

1 1 6 1 1 6 1 1
 3  3  4  2  3  4  2 3  4  144
2 5 0 2 5 0 2 5

1 2 3
(vi) Solution : x1  x2  x3 
  

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 1  72 2 0
x1   2 x2   0
  36   36
 144
x3  3   4
  36
 x1   2 
  x 2    0
 x 3   4

APPLICATION: SOLVING SYSTEM OF EQUATIONS

EQUILIBRIUM LEVEL OF NATIONAL INCOME

Example:
Three sector economy model as follows:
I  I 0  30
Y C  I G G  G0  40
C  C 0  bYd C 0  85
T  T0  tY b  0.75
Yd  Y  T t  0 .2
T0  20
Find the equilibrium level for Y and C using any matrix approach.

Write the equilibrium model as a system of equations.

Y C  I G C = C0 + b Y d
Y-C=I+G C = C0 + b Y d
Y – C = 30 + 40 C = C0 + b[Y – (T0 + tY)]
Y – C = 70 …….(1) C = 85 + 0.75 [Y – (20 + 0.2 Y)]
C = 70 + 0.6Y
- 0.6Y + C = 70 …….. (2)
Y – C = 70 ……….(1)
- 0.6Y + C = 70 …….. (2)

14
Express the system of equations in matrix form AX=B
 1  1 Y  70
 0.6 1  C   70
    
Solve the system by using any matrix approach, for example by Cramer’s rule:
1 1 70  1 1 70
  0.4 1   140 2   112
 0.6 1 70 1  0.6 70

1 140  2 112
Y   350 C   280
 0.4  0.4

LEONTIEF’S INPUT-OUTPUT ANALYSIS

Input-output matrices were developed by Wassily W. Leontief, who won 1973 Nobel Prize
in economic science for the development of the ‘input-output’ method and its application
to economic problem.

Indicate the supply and demand interrelationships that exist among the various sectors of
an economy during some time period.

The matrices show the values of outputs of each sector that are sold as inputs to each
sector and for final use by consumers. Entries are called input–output coefficients.

Example for two sectors :

Consumers (input) External
A B demand Total
Producers A 240 500 460 1200
(output) B 360 200 940 1500
*Production = internal demand + external demand. External demand could be
consumption by exports and consumers. Entries represent the value of the products
and might be in units of millions of dollars of product.
Row – shows the purchases of the sector’s output in all the industries and by the external
demand. The total output of sector A, 240 went as input to sector A itself (internal
use), 500 went to sector B, and 460 went directly to the external demand.

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Column – shows the values of the sector’s purchases for input from each sector (including
itself) and other cost spending. To produce its 1200 units, sector A purchased 240
units of output from itself and 360 units of output from sector B.

The basic structure of the economy remains the same over reasonable intervals of time.
Basic structure: relative amounts of inputs that are used to produce a unit of output

Example: in producing 1200 units of products, sector A purchases 240 units from sector A
and 360 units from sector B. For each unit of output, sector A spends
240 1
  RM0.20 on A
1200 5
360 3
  RM0.30 on B.
1200 10
Combining these ratios, the input requirements per unit of output for each sector:
A B A B
A  240 500  1 1 A
1200 1500   
 360 5 3
200  3 2
B     B
1200 1500  10 15 
where ij th entry of the resulting matrix is the number of units of sector i’s product needed
to produce one unit of sector j’s product. This matrix is known as the technology matrix
for the economy.

Question: Suppose the external demand for sector A changes from 460 to 500 and the
external demand for sector B changes from 940 to 1200. How production will have to
change to meet these new external demands?
Let Xi denote the production required of sector i to satisfy internal and external
demand.
1 1
XA  X A  X B  500
5 3

3 2
XB  X A  X B  1200
10 15

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Using matrix notation:
1 1
X A   5 3  X A  500 
X    3 2  X   1200 
 B    B  
10 15 
X  A X  C
Where X: output vector
A: technology matrix
C: external demand vector

X = AX + C
X – AX = C
(I – A)X = C where (I – A) is the Leontif matrix
(I – A)-1 (I – A)X = (I – A)-1C
IX = (I – A)-1C
X = (I – A)-1C

1 1  4 1
   

I  A   
1 0 
 5 3  5 3
    
0 1  3 2   3 13 
10 15   10 15 
(I – A)-1 can be calculated either by using elementary row operations or adjoint
and determinant method.

[ (I – A) | I ]  …  [ I | (I – A)-1 ]
 4  13 1 0
I  A | I   35 13 0 1
 10 15 

 2  4  13 1 0
  R 1  R 2  155 5

 5  250 1  2
1

5

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 1  445 0 13 1
 R 2  R 1  155750 15 3

 3 
 250 1  52 1

750  1 0 650 250 

R1  155 445 445

445  250 1  52 1

 155  1 0 650 250 

R1   R2  445
600 
445
 250  0 1
225
445 
445 
1 0 130 50 
 89
45 120 
89

0 1 89 
89 

130 50 
 
(I  A) 1   89 89 
45 120 
 
 89 89 

130 50 
  500  1404 .49
X  (I  A) 1 C   89 89   
45 120 1200  1890 .79
 
 89 89 
When external demand changes from 460 to 500 for sector A and from 940 to 1200 for
sector B, sector A need to produce 1404.49 unit and sector B need to produce 1870.79
unit.

Example:
i) Determine the output vector if technology matrix (A) and final demand
vector (B) for industry x, y and z are as follows:
0.4 0.5 0.3  36 
A  0.2 0.1 0.1 B  156 
0.2 0.2 0.1 240 

1 0 0 0.4 0.5 0.3

I  A  0 1 0  0.2 0.1 0.1
0 0 1 0.2 0.2 0.1

 0.6  0.5  0.3

  0.2 0.9  0.1
 0.2  0.2 0.9

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 0 .9  0 . 1
C11  (1) 2  0.79
 0 .2 0.9
 0.2  0.1
C12  (1)3  0.20
 0.2 0.9
C13 = = 0.22 0.79 0.20 0.22 
C21 = = 0.51 ( I  A) C   0.51 0.48 0.22 
0.32 0.12 0.44 
C22 = = 0.48
C23 = = 0.22
C31 = = 0.32
C32 = = 0.12
C33 = = 0.44

| I – A | = –0.2(0.51) + 0.9(0.48) – 0.1(0.22) [expansion row 2]

= 0.308
0.79 0.51 0.32 
Adj ( I  A)  ( I  A)  0.20
T
C 0.48 0.12 
0.22 0.22 0.44 
0.79 0.51 0.32 
1 
1
( I  A)  0.20 0.48 0.12 
0.308 
0.22 0.22 0.44 

 X = (I – A)-1 C

0.79 0.51 0.32   36 

1 
  0.20 0.48 0.12  156 
 
0.308
0.22 0.22 0.44  240 

28.44  79.56  76.8

1 
 7.2  74.88  28.8 
0.308 
7.92  34.32  105 .6 
184 .80  600 
1 
 110 .88   360 
0.308 
147 .84  480 

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ii) Determine the production levels if the final demand changes to 77 for x, 154
for y and 231 for z.

0.79 0.51 0.32   77  692 .5

1 
X 0.20 0.48 0.12  154    380 
0.308   
0.22 0.22 0.44  231   495 

Industry x need to produce 692.5 units.

Industry y need to produce 380 units.
Industry z need to produce 495 units.

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