Question: Question 1 Suppose in a 2-commodity general market model, the general market equilibrium can be written as: Qai = Qs1 Qai = a, +

Question 1 Suppose in a 2-commodity general market model, the general market

Question 1 Suppose in a 2-commodity general market model, the general market equilibrium can be written as: Qai = Qs1 Qai = a, + a, P, + a P2 Qs1 = b, + b, P, + b,P2 Qaz = Qs2 Qaz = a, + a, P, + a,P, Qs2 = Bo + B, P + B2P2 a) Describe this general market equilibrium in matrix forms. (6 Marks) b) In a general manner, discuss the pros and cons of analyzing a general market equilibrium by using basic algebra and matrix algebra. (4 Marks) Pros Cons Basic Algebra Matrix Algebra

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