Question: Please help me understand how to solve this question. Thank you. 2. (30 points) Consider the following general equilibrium model with two competitive goods markets.

Please help me understand how to solve this question. Thank you.

2. (30 points) Consider the following general equilibrium model with two competitive goods markets. In market 1, demand and supply are equal to On = a-bp -ep, and Qs = -f + gp,, respectively. In market 2, demand and supply are equal to On2 = a -BP -EP, and Q32 = -+ yP . All parameters are strictly positive. a) Express the equilibrium condition in matrix form. b) Using an echelon matrix, derive the condition under which a unique equilibrium exists. c) Interpret this condition in terms of mathematics. d) Using a graph, illustrate what happens if the condition derived in part b) is violated (there are two cases that you will want to cover)

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