Gauss-Jordan Method

(Elementary row operations

method)
• The demand and supply functions for
two interdependent commodities are
given by

Using the Gauss-Jordan Method,

determine the equilibrium price and
quantity for this two-commodity model

2007 Pearson Education Asia

• The supply function for a commodity takes the
form

For some constants a; b; c. When P=1, the

quantity supplied is 5; when P=2, the quantity
supplied is 12; when P=3, the quantity supplied
is 23. Use the method of elementary row
operations (Gauss-Jordan Method) to find the
constant a, b and c.

2007 Pearson Education Asia

2007 Pearson Education Asia