The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods. Related: Properties of Determinants - Matrices and Determinants, Business Mathematics and Statistics?

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The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods.

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The equilibrium conditions for two substitute goods are given below: 5...

Equilibrium Conditions for Substitute Goods

Given Equilibrium Conditions:
- 5P1 - 2P2 = 15
- -P1 + 8P2 = 16

Finding Equilibrium Prices:
To find the equilibrium prices of the two goods, we need to solve the above system of equations simultaneously.

Step 1: Setting up the Equations
- Multiply the second equation by 5 to match the coefficients of P1.
- The equations become:
- 5P1 - 2P2 = 15
- -5P1 + 40P2 = 80

Step 2: Adding the Equations
- Add the two equations together to eliminate P1:
- 38P2 = 95

Step 3: Solving for P2
- Divide by 38 on both sides:
- P2 = 95/38 = 2.5

Step 4: Substituting P2 back into an Equation
- Substitute P2 = 2.5 into the first equation:
- 5P1 - 2(2.5) = 15
- 5P1 - 5 = 15
- 5P1 = 20
- P1 = 20/5 = 4

Equilibrium Prices of the Two Goods:
- P1 = 4
- P2 = 2.5

Conclusion:
The equilibrium prices of the two substitute goods are P1 = 4 and P2 = 2.5. Make sure to check the solution by substituting the values back into the original equations.

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The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods. Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics?

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The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods. Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods. Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The equilibrium conditions for two substitute goods are given below: 5P1 – 2P2 = 15 and –P1 + 8P2 = 16 Find the equilibrium prices of the two goods. Related: Properties of Determinants - Matrices and Determinants, Business Mathematics & Statistics?.

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