Question: Question 1 Suppose in a 2-commodity general market model, the general market equilibrium can be written as: Qd1 = Qs1 Qa1 = do + a,

Question 1 Suppose in a 2-commodity general market model, the general market equilibrium can be written as: Qd1 = Qs1 Qa1 = do + a, P1 + a2P2 Qs1 = bo + b,P1 + b2P2 Qaz = Q$2 Qaz = do + a, P1 + a2P2 Qs2 = Bo + B1P1 + 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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