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Q. The following system of equations illustrates the algebraic form of a partial (individual) market equilibrium model, which is a model of price (P) and quantity (Q) determination simultaneously in a widget market:
Q = 120 - 20P.....(1)
Q= 40 + 20P......(2)
By using coefficients of endogenous variables (P and Q) matrix A, endogenous variables (P and Q) vector x, intercepts (constants) vector y, and Cramer's rule, solve for the equilibrium values of PandQ.
(You must show the derivation of P and Q by using a matrix A, 2 vectors x and y, Ax = y, and the Cramer's rule. This means that no credit for no work and no credit for using the repeated substitution method.)
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