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Assignment #03

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Assignment #03

Uploaded by

ananya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mathematics for Economists, 2023

Assignment 3, Marks : 50

Q1. The line L is given by x1 = −t + 2, x2 = 2t − 1, and x3 = t + 3.


a. Verify that the point a = (2, −1, 3) lies on L, but that (1, 1, 1) does
not.
b. Determine the direction of L.
c. Find the equation for the plane through a that is orthogonal to L.
d. Find the point where L intersects the plane 3x1 + 5x2 − x3 = 6.
[2+2+3+3 marks]
Q2. Let the matrices A and T be defined by
   
1 2 3 s t 3
1  7 −8
A= 2 1 3  and T = 3 
12
3 2 1 1 t −3

where s and t are real numbers.


a. Prove that T = A−1 for suitable values of s and t.
b. Suppose that the matrix X satisfies the equation BX = 2X + C, where
   
3 2 3 2 3 0 1
B =  2 3 3  and C =  1 0 3 1 
3 2 3 0 5 −4 1

Use the result in part (a) to find X. [4+4marks]


Q3. A firm can produce three goods A, B and C. It has the following production
function if it uses a fraction λ of labour and 1 − λ of capital:
     
xA 5 3
 xB  = λ  4  + (1 − λ)  10 
xC 3 1

(a.) Can the firm produce the following vectors of output if it has access
to free disposal, i.e.,
 it  can throw
 away
 a part
 of  the produce with no ad-
4 4 3
ditional cost: (i)  7  (ii)  5  (iii)  7  Give specific arguments
2 3 2
using the values of λ required for each vector. [5 marks]

(b.) How would your answers in part (a) above change if the firm did not
have access to free disposal ? Give specific arguments using the values of
λ required for each vector. [ 3 marks]
Q4. B. Consider the following economy with three industries: steel, petrol and
iron. 1 ton of steel requires 0.4 gallons of petrol and 0.2 tons of iron. 1
gallon of petrol requires 0.4 tons of steel and 0.4 tons of iron. 1 ton of iron

1
requires 0.2 tons of steel and 0.3 gallons of petrol. The final demands of
steel, petrol and iron are 20,30 and 40 respectively.
(i) Construct the set of equations representing demand and supply for the
given economy. Also write the given set of equations in matrix form and
point out the input-output matrix. [2 marks]
(ii) Suppose aij represents the fraction of good i needed to produce one
unit of good j. What does the sum a12 + a22 + a32 represent? What does
the sum a31 + a32 + a33 represent? [2 marks]
(iii) Does the given system of equations have a solution? If a solution
exists will it have a unique or infinite solutions? Give proper reasons and
arguments to support your answer. [ 2 marks]
(iv) Solve the system of equations representing the economy using any
method. Find the equilibrium quantities of the goods required to meet
the demands of the economy. Show all the steps and derivations. [6
marks]

Q5. Let matrices A and X be defined by


   
a a 0 x
A =  a a 0  and X =  y 
0 0 b z

( a and b are real numbers)


a. Compute X0 AX, A2 , and A3 .
b. Find all the eigenvalues of A.
c. Express the characteristic polynomial p(λ) as a cubic function of λ.
Show that if we replace λ by A, then p(A) is the zero matrix. [6+6+6
marks]

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