Matrix Algebra

Discipline course -1
Semester -1
Paper – Mathematics and Statistics for
Business
Lesson- Matrix Algebra
Lesson Developer: Nishtha Bhushan
College /Department: Bharati College,
University of Delhi

Institute of Lifelong Learning ,University of Delhi

 Matrix Algebra

Table of Contents:
Lesson: Matrix Algebra

1: Learning Outcomes
2: Introduction
3: Concept of Matrices
4: Vectors
4.1: Addition and Subtraction
4.2: Scalar Multiplication
4.3: Scalar Product of Vectors
4.4: Linear Combination of vectors
5: Rank of a matrix
6: Linear Algebra
6.1: Addition and Subtraction of Matrix Algebra
6.2: Scalar Multiplication
6.3: Multiplication of Matrices
6.4: Identity and Null Matrices
7: System of Linear Equations
8: Applications
9: Elementary Row Transformations
10: Input-Output Analysis
10.1: Open Input-Output Model
10.2: Closed Input-Output Model
Summary
Exercises
Glossary
References

1. Learning Outcomes:
After you have read this lesson you should be able to:
• identify various types of matrices,
• add, subtract and multiply two matrices,
• represent large quantities of data in matrix form,
• understand the concept of vectors,
• compute the rank of a matrix,
• understand the concept of vectors and their linear independence,
• use matrices in solving problems of business and economics,

Institute of Lifelong Learning, University Of Delhi 2

 Matrix Algebra

• solve system of equations and use matrices and determinants,

• differentiate between closed and open Leontief’s input-output
model.

2. Introduction:
The concept of matrices was developed by A.Cayley, J.J.Sylevester, S.B. Forbenious,
Jordan, Jacobi, Hermite, etc. Matrices play a significant role in several areas of
economics, business and applied mathematics. Input – output matrix, payoff
matrices from the theory of games, coefficient matrices and correlation matrices
from econometrics, and the Bordered Hessian matrices that embody the second
order conditions in multivariable optimization theory. Matrix algebra has the
advantage of presenting a system of equations in a compact and simplified form.
Since matrix algebra deals with a system of linear equations only, it is also referred
to as Linear Algebra. Matrices allow us to solve a wide variety of economic problems
which otherwise would have been beyond us. This is because matrix algebra provides
methods for dealing with sets of simultaneous relationships involving many variables

3. Concept of Matrices
It is a rectangular arrangement of elements consisting of m rows and n columns.

 a11 a12  a1n 

 
a a22  a2n 
A =  21
  
 
am1 am2  amn  m×n

The elements in the matrix may be numbers, parameters, or variable and each one
of them has a place within the matrix.
The elements in a horizontal line are called rows; the elements in a vertical
line are called columns. The number of rows and columns define the dimensions of a
matrix (m × n).
Examples:

3
3 2  
A=   B =  4 C = [1 2 3]1×3
1 2 2×2
5 3×1

1 2 3
 
D = 4 5 6 
7 8 9
3×3

Matrix B is composed of a single column, called a column vector Matrix C has only
one row, it is called a row vector Matrix A & D are square matrices.
Transpose of a Matrix

Institute of Lifelong Learning, University Of Delhi 3

 Matrix Algebra

A matrix which converts the row of D into columns and columns of D into rows is
called a transpose of Matrix D and is designated by D’ or DT
1 4 7
 
D = 2 5 8
3 6 9

4. Vectors

An n-dimensional vector is a list of n-real numbers and denotes a point in-n-

dimensional space Rn. A vector is of the form and is denoted by u, v, etc.

Vector v= denotes a point in 2-

a1 2
dimensional space R2.
a2 n*1
3
an

4.1 Addition & Subtraction

A point in 2-dimensional space R2 we add two vectors just as we add two numbers
we simply add separately corresponding coordinates of the two vectors. Thus,

u= (3,2) v= (5,4)
u + v= (3,2) + (5,4) or u = 3 v= 5
2 4
u + v= (8,6)

8
u+v =
6

and

(x1, u2, u3) + (v1, V2, V3) = (u1 + v1, u2 + v2, u3 + v3)

4.2 Scalar Multiplication

It corresponds to statements like “go thrice as far” or “you are halfway there”. A
vector is multiplied coordinate wise, by a real number, or scalar. If k is a scalar and
u= (u1,u2,…….,un) is a vector, then their product is
Ku
= K (u1,u2,…….,un)
Ku= (ku1,ku2,…….,kun)

Or 3u where u=[3 2 5]
=3[3 2 5] =[3(3), 2(3), 5(3)]
= [9 6 15]

Institute of Lifelong Learning, University Of Delhi 4

 Matrix Algebra

4.3 Scalar Product of Vectors

It is also called the dot product or inner product.

u1 v1
Let U = u2 & V= v2
un vn

are two n-dimensional vectors.

The Scalar product of these vectors, denoted by U.V (read as U dot V) is given by

∑ uuivi
i=1

The basic condition for the scalar product is that the two vectors must be of same
dimensions. Both can be column vectors or rows vector or one a row vector and the
other a column vector.

a11
A= [a11 a12 a13], B= a21
a31

3
AB= (a11*b11) + (a12*b21) + (a13*b31) = ai b i
∑
i=1

Question 1:
1
A=[3 4 5 6] B= 2
3
4

Calculate AB.

Solution 1: AB= [3(1) + 4(2) + 5(3) + 6(4)]

AB= [3+8+15+24]
AB=50

There is one pre-condition that each vector should have precisely the same number
of elements. The product is calculated by multiplying the individual elements of the
row vector by their corresponding elements in the column vector.

4.4 Linear Combination of Vectors

Institute of Lifelong Learning, University Of Delhi 5
 Matrix Algebra

Let u, v and w be each n-dimensional vector and a,b, and c are scalars. If we can
find a vector x such that x= au+ bv+ cw
x is termed as linear combination of the vectors x, y and z.

Question 2:
2
If u = and v=
1
3 2

Find:
(i) 2u+ 3v
(ii) 0.5u+ 0.2v

Solution 2: (i) 2u + 3v

=2 2 +3 1
3 2

= 4 + 3
6 6

7
= 12

(iii) 0.5u+ 0.2v

2 1
= 0.5 3 + 0.2 2

1 0.2
= 1.5 + 0.4

1.2
= 1.9

Linear independence of vectors: A set of n-dimensional vectors A1, A2&A3 …An is

said to be linearly independent if the linear combination

Institute of Lifelong Learning, University Of Delhi 6

 Matrix Algebra

X1A1 + x2A2 + x3A3+……+xnAn =0

when all xi’s (i= 1 to n) are equal to zero and
where xi’s are scalars
If A1, A2, A3 ,…An are not linearly independent, then they are said to be linearly
dependent.

Question 3: Determine whether or not the given collections of vectors in R4 are

linearly independent:

1 1 1
0 2 2
1 3 3
0 4 4

Solution 3: 1 1 0 0
x1+ x2 +x3= 0 0 0 0
1 0 1 0
0 1 1 0

Expand the above in system of equations format, and solve for the values of x1, x2,
and x3 .For the set of vectors to be linearly independent x1, x2, and x3 should b equal
to zero.

x1 + x2 + 0x3 = 0

0x1 +0x2 + 0x3 = 0

x1 +0x2 + x3 = 0

0x1 + x2+ x3 = 0

The matrix formulation of the system is

AX=B

 
1 1 0
   x1   0 
0 0 0  x 2  = 0
     
1 0 1  x 3   0 
0 1 1 

Matrix A is a coefficient matrix whose columns are the original three vectors. So, the
question of the linear independence reduces to a consideration of the coefficient
matrix. Reduce the coefficient matrix into an upper triangular matrix using
Elementary Row Operations (ERTs).

Institute of Lifelong Learning, University Of Delhi 7

 Matrix Algebra

R3→R3 –R1 andR2 is interchanged with R4.

The above matrix will be reduced to

 
1 1 0
   x1  0 
0 1 1  x 2  = 0 
     
0 −1 1  x3  0 
0 0 0 

R3→R3 + R2 and R4→R4 – R2. It changes to

 
1 1 0
   x1  0 
0 1 1  x 2  = 0
     
0 0 2  x 3  0 
0 0 0 

Expanding the above matrix format as a system of equations

x1 + x2 + 0x3 = 0

0x1+ x2 + x3 = 0

0x1 + 0x2 + 2x3 = 0

0x1 + 0x2 + 0x3 = 0

From the third equation, one can get,

2x3=0

Thus, x3 = 0. Substituting this x3 = 0 in the second equation, we get,

x2= 0. Substituting the values of x2 and x3in equation one, we can calculate the
value of x1. x1=0.

Thus, x1=0, x2=0, and x3=0

Hence, the given vectors are not independent.

5. Rank of a Matrix
It is said to be r if and only if, there is at least one square sub-matrix of order (r × r),
which is non-singular and no square sub-matrix of higher order which is non-
singular.

Computing Rank Using Determinant

Institute of Lifelong Learning, University Of Delhi 8
 Matrix Algebra

Let A be an m×n matrix. A minor of A of order r is a determinant of a (r×r) sub-

matrix of A. The minors of order r from the matrix A are obtained byfirst deleting
m – r rows and n – r columns, and then computing the determinants. There are
many minors of A of a given order. The rank of A is the maximal order of a non-zero
minor of A. Start with the minors of maximal orders of r. If these is one that is non-
zero, then Rank of a matrix (A) = r. If all maximal minors are zero, then rank (A) <
r, and continue with the minors of order r – 1 and so on, until a minor is found,
thatis non-zero. If all minors of order 1 (all entries in Matrix A) are zero, than
Rank(A) = 0.
Question 4:

1 2 3 4 
 
Consider a matrix A = 5 6 7 8 
9 10 11 12
3× 4

Calculate the rank of the matrix.

Solution 4: If has got four sub-matrices of order (3 × 3). All will have determinants
equal to zero
1 2 3  1 3 4  2 3 4
     
A 1 = 5 6 7  A 2 = 5 7 8  A3 =  6 7 8 
9 10 11 9 11 12 10 11 12
3×3

1 2 4 
A4 = 5 6 8 
 
9 10 12

These all matrices have zero determinants. Consequently the rank of a matrix cannot
be as high as 3. It also has eighteen sub-matrices of the order (2 × 2), few of them
being
1 2  1 2  2 3 3 4
A a =   A b =   A c =   A d =  
5 6   9 10  6 7 7 8 
A a has a determinant (6-10) = -4 i.e. a non-zero determinant. There is no need to
compute the determinant of other submatrices. Thus, the rank of A is 2.

Value Addition 1: Quiz

True/False on Matrix Algebra
Click on the link below to take a quiz on matrix algebra
Source: people.hofstra.edu/Stefan_waner/realworld/quiz/Finitechap3TF.html

6. Linear Algebra
Linear algebra using matrices provides methods for dealing with sets of
simultaneous relationships involving many variables. It allows expression of a
complicated system of equations in a simplified and lucid manner and provides a
Institute of Lifelong Learning, University Of Delhi 9
 Matrix Algebra

shortcut method to determine whether a solution exists before it is actually

attempted and also facilitates the way of solving the system of equations, but it can
be applied to only linear equations system.
x+y=3 and 2x − 3y = 10

These are linear equations. These are called linear because their graphs are straight
lines. Their key feature is that each term of the equation contains at the most one
variable, and that variable appears only to the first power rather than to the second,
third, fourth or so on.
6.1 Addition and Subtraction of Matrices

Addition as well as subtraction of two matrices A + B or (A – B) requires that the two

matrices should be of the same order. Each element of one matrix is added to or
subtracted from the corresponding element of the other matrix.
1 2 3 3 4 2
Question 5: A=  B= 
4 5 6 2×3 1 7 2

Calculate (i) A + B (ii) A – B

Solution 5:

1 + 3 2 + 4 3 + 2  1 − 3 2 − 4 3 − 2 
A +B =   A −B =  
 4 + 1 5 + 7 6 + 8  4 − 1 5 − 7 6 − 8

4 6 5  − 2 − 2 1 
A +B =   A −B =  
5 12 14  3 − 2 − 2

1 2
  1 3
Question 6: Calculate C + D. If C = 3 4 D= 
5 6 2 4 2×2
3×2

Solution 6: C + D cannot be computed as the two matrices don’t have the same
order.

6.2 Scalar Multiplication

A matrix can be multiplied by ordinary numbers, called scalars (i.e. 1, -5, -2/3,
0.05). It involves multiplication of every element of the matrix by the number. This
process is called scalar multiplication because it either scales the matrix up or down
according to the scalar.
3 4
 
Question 7: A 5 6
7 8
3×2

Calculate (i) 5A (ii) -3A (iii) ½ (A)

Institute of Lifelong Learning, University Of Delhi 10

 Matrix Algebra

Solution 7:

5(3) 5(4) 15 20 

   
(i) 5A = 5(5) 5(6 ) = 25 30 
5(7) 5(8) 35 40
3× 2

 − 9 − 12 
 
(ii) − 3A = − 15 − 18 
− 21 − 24
3×2

3 / 2 4 / 2 3 / 2 2
1    
(iii) A = 5 / 2 6 / 2 = 5 / 2 3
2
7 / 2 8 / 2 7 / 2 4
3×2

6.3 Multiplication of Matrices

It requires that the two matrices should be conformable i.e. that number of columns
in pre-factor or lead matrix should be equal to the number of rows in the post-factor
or lag matrix. Each row vector in all pre-factor is multiplied by each column vector of
the post-factor. The row-column products are then used as elements in the formation
of the resultant production matrix. The row-column products are called inner
products.
1 2
1 2 3  
Question 8: If A =   B = 0 1
4 5 6 2×3 3 2
3×2

Calculate AB and BA.

1 2
1 2 3  
Solution 8: A =   B = 0 1
4 5 6 2×3
3 2 3×2

The resultant matrix (AB) will have the order 2×2.

A ( 2 × 3) ⇒ Columns
= Rows ⇐ B ( 3 × 2 )

AB = (2 × 2)

1(1) + 2(0) + 3(3) 1(2) + 2(1) + 3(2)

⇒ AB =  
4(1) + 5(0) + 6(3) 4(2) + 5(1) + 6(2) 2×2

 1+0+9 2+2+6 
AB =  
4 + 0 + 18 8 + 5 + 12 2×2

10 10
AB =  
22 25 2×2

Institute of Lifelong Learning, University Of Delhi 11

 Matrix Algebra

To calculate BA

Number of columns in B are 2 and number of rows in A are 3. They are non-
conformable. So, AB can’t be calculated.

Question 9: A shop sells 20 ACs, 40 Fans and 50 Coolers in a month. The price of
an AC is Rs.20,000, that of a fan is Rs.3,000 and of cooler is Rs.8,000. The cost to
the shop is Rs.18,000 for one AC, Rs.2700 for one Fan and Rs.7,200 for one cooler.
Find the monthly profits of the shop.

Solution 9 :
18,000
20,000  
2,700 
A = [ 20 40 50] 
B =  3,000 

C=
 7,200 
 8,000   
 

20,000
 
Total Revenue = [20 40 50]1×3  3,000 
 8,000  3×1

= [4,00,000 + 1,20,000 + 4,00,000]

= [9,20,000]

18,000
 
Total Cost = [20 40 50]  2,700 
 7,200 

= [3,60,000 + 1,08,000 + 3,60,000]

= [8,28,000]

Total Profit = [9,20,000] – [8,28,000]

= [92,000]

Total Profit = Rs.92,000

6.4 Identity and Null Matrices

An identity matrix I is a square matrix, which has 1 in the principal diagonal from left
to right i.e. at a11 , a22 , a33 ,..., amn and zero everywhere else. In denotes the identity
matrix of order (n×n). It is equivalent to the number 1 in algebra as the
multiplication of a matrix by an identity matrix leaves the original matrix unchanged.
Multiplication of an identity matrix by itself leaves the identity matrix unchanged
[ ]
I × I = (I) = I . Identity matrix is both symmetric and idempotent matrix.
2

A null matrix is composed only of zeros and can be of any order and not necessarily
square. Addition or subtraction of the null the original matrix remains unchanged and
multiplication by a null matrix produces a null matrix.

Institute of Lifelong Learning, University Of Delhi 12

 Matrix Algebra

1 0 0
1 0  
I2 =   I3 = 0 1 0
0 1 2×2 0 0 1
3×3

0 0 0  0 0
N=  N = 
0 0 0 2×3  0 0 2 × 2

Value Addition 2: Quiz

MCQs on Matrix Algebra
Click on the link below to take a quiz on sums and products of matrices.
Source: www.maths.usyd.edu.au/u/UG/JM/MATH1002/Quizzes/quiz7.html

7. System of Linear Equations

Matrix algebra permits the concise expression of a system of linear equations.

3x + 5y = 20

2x + 3y = 15

Expressing in matrix format

AX = B.

3 5 x  20
A=  X=  B= 
2 3 y  15

where, A is a coefficient matrix

X is the solution vector

B is the vector of constant terms

X and B will always be column matrix.

AX = B

3 5 x  20
   = 
2 3 y  15

 3x + 5 y  20
2 x + 3 y  = 15 Q.E.D.
 

Thus, any information in most of the business problems can be expressed in the form
of linear equations:
a11 x + a12 y + a13 z = b1

a21 x + a22 y + a23 z = b 2

a31 x + a32 y + a33 z = b 3
Institute of Lifelong Learning, University Of Delhi 13
 Matrix Algebra

These are called linear equations in three variables, x, y and z. If all the constants,
i.e. b1 , b 2 and b 3 are zero, then the given equations are called homogenous linear
equations. The given system of linear equation can be expressed as a single matrix
equation:
AX = B
A system of equation is said to be consistent if it has atleast one solution, and is said
to be inconsistent if does not have any solution.
A system of homogeneous equations is always consistent because it has atleast one
solution called trivial solution i.e. (x = y = z = 0). This solution is also called zero
solution. This trivial solution sometimes may be the only solution of a linear
homogeneous system.

Value Addition 3: Did You Know?

System of Equations
While system of equations may not possess any solution, every homogeneous
system of equations possess at least one solution, i.e., trivial solution.

Solving using matrices

Let | A | ≠ 0 so that A-1 exists

Pre-multiplying AX = B by A-1,
We get A −1 (AX ) = AB

⇒ (A A )X = A
−1
B
−1

⇒ IX = A −1B ( A −1
A = I)

Thus X = A −1B
Since A −1 is a 3×3 matrix and B is a 3×1 matrix, therefore A −1B is a 3×1 matrix of the
form

 k1   x   k1 
A B = k 2 
−1
X = A B ⇒  y  = k 2 
−1
     
 k 3   z   k 3 
Thus n = k1, y = k2 and z = k3 is the solution. But, this method fails if |A| = 0.

Figure 1: Matrix Solutions other than Unique Solution

Institute of Lifelong Learning, University Of Delhi 14

 Matrix Algebra

Question 10: Solve the system of equations with the help of matrices
2x + 3y = 10

x+y=0

Solution 10: The given system of expressed as the matrix equation

AX = B
2 3 x  10
A=  X=  B= 
1 1 y  5
2 3
| A |= = (2 − 3) = −1
1 1

As | A |≠ 0 . Thus, there exists a unique solution and A −1 exists.

1
A −1 = (Adjoint A)
|A|

1  1 − 3
A −1 =  
− 1 − 1 2 

AX = B ⇒ X = A −1B
x  1 1 − 3 10
 =    
y  − 1 1 2   5 
x  − 1 10 − 15
 =  
y  1 − 5 + 10

x  − 1 − 5 x   5 
 =   ⇒ = 
y  1 5  y  − 5
Hence, x = 5 and y = -5 is the required solution.

Value Addition 4: An interesting Fact

Inverse of a Matrix
Inverse of a (2×2) matrix can be computed by simply finding its adjoint by

Institute of Lifelong Learning, University Of Delhi 15

 Matrix Algebra

interchange of principal diagonal elements and changing the signs of non-diagonal

elements and dividing it by determinant of the matrix.

8. Applications
It can be applied to market model or national income model.

Question 11: The equilibrium condition for two related goods is given below :
2P1 − 5P2 = 15
−2P1 + BP2 = 20

Using matrices, find the equilibrium prices.

Solution 11: The given system of equations can be expressed in form of matrices as
:
AX = B
+ 2 − 5 P1  15
   = 
 − 2 8  P2  20
2 −5
A = = 16 + 10 = 26
−2 8

As |A| ≠ 0. Thus A −1 does exist.

1  2 − 5
A −1 = (Adjoint A) A =  
|A| − 2 8 
8 5
Adjoint A =   (1) Interchange of a11 & a12
2 2
(2) Sign change of non-diagonal elements
1 8 5
Thus, A −1  
26  2 2 

X = A −1B
 P1  1 8 5 15
⇒   =    
P
 2 26 2 2 20

P1  1 120 + 100

⇒  =  
P2  26  30 + 40 

P1  1 220 P  220 / 26

 =   ⇒  1 =  
P
 2 26  70  P2   70 / 26 
P1 = Rs.220/27 & P2 = Rs.70/26 is the required solution.

9. Elementary Row Transformations (ERTs)

There are basically three operations :

Institute of Lifelong Learning, University Of Delhi 16

 Matrix Algebra

(1) Interchange of two rows i.e. Ri↔Rj

(2) Multiplying the elements of the ith row by a non-zero scalar i.e. Ri→kRi.
(3) It has two step process;
(a) Multiply the elements of the jthrow by a non-zero scalar.
(b) Add the above computed elements to the corresponding elements of
the ith row i.e., R i → R i + kR j
The same operations can be applied to a column also then, it will be called
elementary Column Operations (ECTs).
Consider the system of linear equations AX = B.

a11 a12 a13  x  b1 

     
A = a21 a22 a23 , X = y  , B = b 2 
a31 a32 a33   z  b 3 
The augmented matrix
[A │ B]
is the coefficient matrix A with the column vector of constants B set alongside it,
separated by a line.Try to reduce the matrix A to a triangular matrix by using
required ERTs. The required steps are:

Figure 2: Procedure of finding the values of ‘x’, ‘y’ and ‘z’ in a matrix

The above figure is described below:

Institute of Lifelong Learning, University Of Delhi 17
 Matrix Algebra

Step 1: Try to get unity (1) at a11 . It may be possible either by a suitable
interchange of the first row with some other row where either a21 or a31 is 1 (unity).
First row can be divided by a11 (a11 ≠ 0) to make it unity.

Step 2: Make a21 = 0 and a31 = 0 with the help of a11 = 1 using suitable ERTs.

Step 3: Make a22 = 1 (unity) using the similar process as done earlier.

Step 4: Make a32 = 0 with the help of a22 = 1 using suitable ERTs.

Above operations should also be applied on the matrix B, together with coefficient
matrix A.
Using the above steps, the given coefficient matrix A can be reduced to a triangular
matrix and reduces to

1 α 2 α3 d1 
 
0 1 β3 d2 
0 0 γ3 d3 

which can now be expanded.

x + α 2 y + α 3 z = d1 (1)
y + β 3 z = d2 (2)
r3 z = d3
⇒ z = d3 / γ 3 (r3 ≠ 0)
Substituting the value of z in equation (2), y can be computed. The value of x can be
obtained by substituting the values of y and z in equation (1). Hence, AX = B will be
solved.

It is a case of unique solution. Otherwise:

(i) The system AX = B will be inconsistent if after the application of ERTs, AX = B
reduces to the form
1 α 1 α 2  x  d1 
     
0 1 β 3  y  = d2  but (d3 ≠ 0)
0 0 0   z  d3 
(ii) The system AX = B has an infinite many solutions, i.e., it will be consistent if
other using the required ERTs, AX= B reduces to the form
1 α 2 α 3 d1 
 
0 1 β 3 d2 
0 0 0 0 

Question 12: Solve the following of equations using ERTs

3x + 2y + 6z = 24
2x + 4y + 3z = 23
5x + 3y + 4z = 33

Solution 12:
The augmented matrix is

Institute of Lifelong Learning, University Of Delhi 18

 Matrix Algebra

3 2 6 24
 
2 4 3 23
5 3 4 33
1
R1 → R1 (Making a11 = 1 )
3
1 2 / 3 2 8 
 
2 4 3 23
5 3 4 33
R 2 → R 2 − 2R 1 R 3 → R 3 − 5R 1
(Making a21 = 0 ) (Making a31 = 0 )
1 2 / 3 2 8 
 
0 8 / 3 − 1 7 
0 − 1 / 3 − 6 − 7
R2 → 3 / 8 R2 (Making a22 = 1 )
1 2 / 3 2 8 
 
 0 1 − 3 / 8 21 / 8
0 − 1 / 3 −6 − 7 
1
R 3 → R 3 + RR 2 (Making a32 = 0 )
3
1 2 / 3 2 8 
 
0 1 −3/8 21 / 8 
0 0 − 49 / 8 − 49 / 8
Now expanding this augmented matrix.
1 2 / 3 2 8 
 
0 1 −3/8 21 / 8 
0 0 − 49 / 8 − 49 / 8
in matrix form AX = B.
1 2 / 3 2  x   8 
     
 0 1 − 3 / 8  y  =  21 / 8 
0 0 − 49 / 8  z  − 49 / 8
x + 2 / 3y + 2z = 8 (1)
y − 3 / 8z = 21 / 8 (2)
− 49 / 8z = −49 / 8 (3)
Substituting z = 1 in equation (2),
y − 3 / 8(1) = 21 / 8
y − 3 / 8 = 21 / 8
y = 21 / 8 + 3 / 8
y − 24 / 8 y=3
Substituting the values of y and z in equations (1)
x + 2 / 3(3) + 2(1) = 8
x+2+2 =8
x+4=8
x =8−4
⇒x = 4
Thus, x = 4, y = 3 and z = 1 is the required solution.
Institute of Lifelong Learning, University Of Delhi 19
 Matrix Algebra

Value Addition 5: An Easy Way

Elementary Row Transformations
The augmented matrix [A│B], where matrix A can be reduced to an identity
matrix by working along a principal axis or diagonal from left to right. Using
ERTs, a11 should be reduced to unity, then a21 and a31 should be made ‘zero’.
Then a31 should be reduced to unity and a21 and a31 should be made ‘zero’.
Thus, a31 should be reduced to unity and a31 and a32 should be made zero.
Expand the augmented matrix, and one can get the required solution directly
without any backward substitution.
Try to solve the above question using this approach.

10. Input-Output Analysis

In the modern world, production of one product requires the input of several other
goods or products or intermediate goods in the production process. The output of
any industry is needed as an input in several other industries. The concept was
developed by Prof. W.W. Leontief. He developed an empirical analysis of the
production process. The analysis emphasizes on the technological problem of
production under the assumption that the demands of the products are given
exogenously. It determines the total production of goods and the quantities of each
product used up in production process, given the available resources and the state of
technology. The analysis emphasizes the inter-industry interdependence i.e., each
industry uses output of various industries, including its own output as inputs.
Whatever is used up in production of a good by an industry is called intermediate
and the production is considered to be an output. Let us assume that an economy
has n industries, each producing only one kind of a good. Let x j be the total output
of jth industry (j = 1, 2, 3, … x) and x ij denote the output of ith industry used by jth
industry as input to produce xj units.

Table
(Output) Consumers (Inputs)
Producers 1 2 … N
1 x 11 x12 … x1n
2. x 21 x 22 … x 2n
   … 
N xn1 xn2 … xnn

Proportion of ith industry demand for ith industry output (xij) to manufacture its total
output xj is constant.
i.e. x ij / x j = aij (constant)
aijs are called technical coefficients or input coefficients or input-output coefficients.
Thus, aij is the quantity of ith goods required to produce one unit of jthgood. (This
interpretation holds goods when x ij and x j are expressed in terms of physical units.

Value Addition 6: Did You Know?

Input-Output Analysis
(i) aij ≥ 0 for i ≠ j

Institute of Lifelong Learning, University Of Delhi 20

 Matrix Algebra

(ii) 0 ≤ aij < 1 for i = j . (Production of one unit in any industry should use less
than one unit of its own output as input.)

aij means the rupee of input from industry i required to produce a rupee worth of
output in industry j. (This meaning holds goods when x ij and x j are expressed in
monetary terms. aijs are arranged in the form of n×m matrix A as
a11a12  a1n 
 
a a22  a2n 
A =  21
    
 
an1
an2  ann 
Matrix A is called technical or input-output matrix. It expresses the technology of the
economy in a simplified manner.

10.1 The Open Input-Output Model

It is assumed that in addition to the n industries, which produces various goods and
uses or demands their output to be used as input in the production process. There is
final demand or final consumption of these goods as well. It is determined
exogenously and is denoted by di as final demand for the ith good (i = 1, 2, 3, …, n).
The objective is to compute output (x 1 , x 2 ,..., x n ) of the n industries which is required
to meet the input needs of various industries and final demand as well.

General Representation of Input-Output Table

Producers Consumers Final Total / Gross

(Industries) (Industries) Demands Output
1 2  n
1 x 11 x 12  x 1n d1 x1
2 x 21 x 22  x 2n d2 x2
      
n x n1 x n2 x nn dn xn
Primary Input x 01 x 02 x 03 x0

Total/Gross output of the industry will be the summation of all intermediate demand
for the product plus the final demand d is for the product arising from ultimate or
final consumers or users. Primary input can e land, labour or capital.
Thus,
x11 + x12 +  + x1n + d1 = x1
x 21 + x 22 +  + x 2n + d2 = x 2
x ij
Since = aij or aij x j = x ij , the equation can also be written as
xj
a11 x 1 + a12 x 2 + a13 x 3 + ... + a1n x n + d1 = x 1
a21 x 2 + a22 x 2 + ...... + a2n x n + d2 = x 2
or the general expression can be
a11 x 1 + a12 x 2 + ... + ain x n + di = x i
(i = 1, 2, 3, …, n)

Institute of Lifelong Learning, University Of Delhi 21

 Matrix Algebra

In matrix form, it can be written as

X = AX + D
 x1  a11 a12  a1n   d1 
     
x a a  a dl2
where X =  2  A =  21 22 2n 
D= 
         
     
x n  an1 an2  ann   dn 
where X = Gross Output Vector
A is technical coefficient matrix D = Final Demand Vector
X − AX = D
X(I − A ) = D
X = (I − A ) D
−1

(I-A) matrix is called the Leontief matrix.

If |I – A| ≠ 0, we can find [I – A]-1 and can solve the system of equations and
solution will be unique as well.
The solution can be written as
X = (I − A ) D
−1

 x1  −1 d1 
x  1 − a11 − a12  − a1n  d 
 2  = 1  − a 21 1 − a 22  − a 2n   2
   |1 − A |   
   − a 31 − a 32  1 − a nn   
xn  d n 
n

(1) The vertical summation of Matrix A should be less than 1 (unity) i.e. ∑a
i =1
ij <1

(for j = 1, 2, 3, …, n)t
(2) When aijs are expressed in physical units, then aij > 1 for all i ≠ j , i.e. 10
kgs.of sugarcane is required to produce a kg of sugar.
(3) the elements of (I – A)-1 are known as sectoral multipliers.

Hawkins-Simon Conditions for the Viability of the System

(1) Determinant of (I – A) i.e. |I – A| should be positive.

(2) All diagonal elements of Leontief matrix i.e. (I – A) matrix should be positive,
i.e. 1 − a11 ,1 − a22 ,1 − a33 ,..., (1 − ann ) should be positive, or a11 , a22 ,..., ann should
be less than 1.
These conditions ensure that the system does not give negative outputs i.e.
the system is viable.

10.2 Closed Input-Output Model

The closed model does not have final demand by the ultimate users. The entire
production is consumed by the industries internally i.e. whatever is produced
consumed within the industries itself.

Question 13: Given the input-output coefficient matrix A and the final demand
vector D.
0.0 0.3 0.3 200
   
A = 0.3 0.1 0.1, D =  50 
0.2 0.4 0.0 100 

Institute of Lifelong Learning, University Of Delhi 22

 Matrix Algebra

(1) Write the set of balancing equations.

(2) Compute the output levels of the three industries.
(3) If the final demand of second industry increases by one unit, determine the
charges in the output of three industries.
(4) Find the total primary input required.
(5) Test the Hawkins-Simon conditions for the viability of the system.
(6) Write down the input-output matrix for the three industries.
(7) If the price per unit of primary input is Rs.50/hour assuming primary input is
labour and the price is its wage rate. Calculate the value added.
(8) Given the price per unit of primary input being Rs.50/hour Compute the
equilibrium prices of the products of three industries.

Solution 13 : Let x 1 , x 2 & x 3 be the gross output of the three industrial

(1) The set of balancing equation can be written as

X = AX + D
 x 1   0 0.3 0.3  x 1  200
       
x 2  = 0.3 0.1 0.1 x 2  +  50 
x 3  0.2 0.4 0  x 3  100 

Expanding this
x 1 = 0x 1 + 0.3x 2 + 0.3x 3 + 200
x 2 = 0.3x 1 + 0.1x 2 + 0.1x 2 + 50

x 3 = 0.2x 1 + 0.4x 2 + 0x 3 = 100

X = AX + D ⇒ X − AX = D ⇒ X(I − A ) = D X = (I − A ) D
−1
(2)

1 0 0  0 0.3 0.3  1 − 0.3 − 0.3

[I − A ] = 0 1 0 − 0.3 0.1 0.1 = − 0.3 0.9 − 0.1
    
0 0 1 0.2 0.4 0  − 0.2 − 0.4 1 

| I − A | = 1(0.9 − 0.04) + 0.3(− 0.3 − 0.02) − 0.3(0.12 + 0.18)

= (0.86 ) + 0.3(− 0.32) − 0.3(0.3)

= 0.764 − 0.09
| I − A | = 0.674 ≠ 0

Thus [I − A ]
−1
exists

0.86 0.42 0.30

1  
[I − A ]
−1
=  0.32 0.94 0.19
0.674
0.30 0.46 0.81

X = (I − A ) D
−1

Institute of Lifelong Learning, University Of Delhi 23

 Matrix Algebra

x1  0.86 0.42 0.30 200

  1    
x 2  = 0.674 0.32 0.94 0.19  50 
x 3  0.30 0.46 0.81 100 

x 1   0.86(200 ) + 0.42(50) + 0.3(100 ) 

  1  
x 2  = 0.674 0.32(200 ) + 0.94(50) + 0.19(100 )
x 3  0.30(200 ) + 0.46(50) + 0.81(100 )

x1  172 + 21 + 30 x1  223

  1     1  
x 2  = 0.674  64 + 47 + 19  ⇒ x 2  = 0.674 130 
x 3   60 + 23 + 81  x 3  164 
223 130 164
x1 = , x2 = x3 =
0.674 0.674 0.674
x 1 = 330.86, x 2 = 192.88, x 3 = 243.32

∆X = (I − A ) ∆D
−1
(3)

0
 
∆D = 1
0

 ∆x 1  0.86 0.42 0.30 0

  1    
∆x 2  = 0.674 0.32 0.94 0.19 1
∆x 3  0.30 0.46 0.81 0
 ∆x 1  0 + 0.42 + 0
  1  
∆x 2  = 0.674 0 + 0.94 + 0
∆x 3  0 + 0.46 + 0

0.42 0.94 0.46

∆x 1 = ∆x 2 = , ∆x 3 =
0.674 0.674 0.674
∆x 1 = 0.623 ∆x 2 = 1.394 ∆x 3 = 0.682

(4) a01 (Primary input required per unit of product of first industry)
3

a01 = 1 − ∑ ai1
i =1

a01 = 1 − 0.3 − 0.2 ⇒ a01 = 1 − 0.5 ⇒ a01 = 0.5

a02 (Primary input required to produce a unit of second industry)

a02 = 1 − 0.8 ⇒ a02 = 0.2

a03 = 1 − 0.4 ⇒ a03 = 0.6

Thus, total primary input requirement is
= 0.5(330.86 ) + 0.2(192.88) + 0.6(243.32)
= 165.43 + 38.576 + 145.992
= 350 approximately
(5) Hawkins-Simon Conditions
Institute of Lifelong Learning, University Of Delhi 24
 Matrix Algebra

(a) | I − A |≠ 0 as| I − A | = 0.674

(b) 1 − a11 = 1, 1 − a22 = 0.9 & 1 − a33 = 1

All diagonal elements are positive.
Thus, conditions are satisfied, and system is thus viable.
(6) Input -Output Table

Producer Consumers Final Gross

Demand Output
I II III

I 0 0.3 (192.88) 0.3 (243.32) 200 330.86

= 57.864 = 72.996

II 0.3 (330.86) 0.1 (192.88) 0.1 (243.32) 50 192.8

= 99.258 = 19.288 = 24.332

III 0.2 (330.86) 0.4 (192.88) 0 100 243.32

= 66.172 = 77.152

(7) Value Added = Primary Input Requirement x Price Per Unit

Value added = 350 (50)
Value added = Rs.17,500
(8) Let p1 , p 2 and p 3 be the price unit of goods of three industries :

P1  0.5(50)
 
[
P2  = (I − A )
T
]
−1 
0.2(50)

P3  0.6(50)

P1  0.86 0.32 0.3  25

  1    
P2  = 0.674 0.42 0.94 0.46 10 
P3  0.30 0.19 0.81 30

[
 (I − A ) ] = [(I − A ) ]
T −1 −1 T

p1   0.86(25) + 0.32(10) + 0.3(30) 

  1  
p 2  = 0.674 0.42(25) + 0.94(10) + 0.46(30)
p 3  0.30(25) + 0.19(10) + 0.81(30)

p1   21.5 + 3.2 + 9 

  1  
p 2  = 0.674 10.5 + 9.4 + 13.8
p 3   7.5 + 1.9 + 24.3 

p1  33.7
  1  
p 2  = 0.674 33.7
p 3  33.7

33.7 33.07 33.7

p1 = p2 = = Rs.50 / unit p3 =
0.674 0.674 0.674
Institute of Lifelong Learning, University Of Delhi 25
 Matrix Algebra

p1 = Rs.50 / unit p 3 = Rs.50 / unit

Value Addition 7: Quiz

MCQs on Matrices
Click on the link below and click on the start button to take a quiz on matrices.
Source: www.proprofs.com/quiz-school/story.php?title=matrices-self-study-quiz

Summary:
• It is a rectangular arrangement of elements consisting of m rows and n
columns.
• The elements in the matrix may be numbers, parameters, or variable and
each one of them has a place within the matrix.
• The elements in a horizontal line are called rows; the numbers in a vertical
00line are called columns.
• Let u, v and w be each n-dimensional vector and a,b, and c are scalars. If we
can find a vector x such that x= au+ bv+ cw
x is termed as linear combination of the vectors x, y and z.
• A set of n-dimensional vectors A1, A2&A3 …An is said to be linearly
independent if the linear combination
X1A1 + x2A2 + x3A3+……+xnAn =0
when all xi’s (i= 1 to n) are equal to zero and
where xi’s are scalars
• The number of rows and columns define the dimensions of a matrix (m × n).
• A matrix which converts the row of D into columns and columns of D into
rows is called a transpose of Matrix D and is designated by D’ or DT
• Linear algebra or matrices provides methods for dealing with sets of
simultaneous relationships involving many variables.
• x+y=3 and 2x − 3y = 10
These are called linear because their graphs are straight lines.
• Addition as well as subtraction of two matrices A + B or (A – B) requires that
the two matrices should be of the same order. Each element of one matrix is
added to or subtracted from the corresponding element of the other matrix.
• A matrix can be multiplied by ordinary numbers, called scalars (i.e. 1, -5, -
2/3, 0.05). It involves multiplication of every element of the matrix by the
number.
• Multiplication requires that the two matrices should be conformable i.e. that
number of columns in pre-factor or lead matrix should be equal to the
number of rows in the post-factor or lag matrix.
• An identity matrix I is a square matrix, which has 1 in the principal diagonal
from left to right i.e. at a11 , a22 , a33 ,..., amn and zero everywhere else.
• There are basically three operations :Interchange of two rows i.e. Ri↔Rj,
Multiplying the elements of the ith row by a non-zero scalar i.e. Ri→kRi.It has
two step process;Multiply the elements of the jth row by a non-zero scalar and
Add the above computed elements to the corresponding elements of the ith
row i.e., R i → R i + kR j
• The same operations can be applied to a column also then it will be called
elementary Column Operations (ECTs).

Institute of Lifelong Learning, University Of Delhi 26

 Matrix Algebra

• The closed model does not have final demand by the ultimate users. The
entire production is consumed by the industries internally i.e. whatever is
produced consumed within the industries itself.

Glossary

Adjoint of a matrix: An adjoint is the transpose of a cofactor matrix. Given a 3x3

matrix A, then its adjoint will be given by

 C11 C21 C31 

AdjA = C12 C22 C32 
C13 C23 C33 

Cofactors: A minor coupled with a prescribed sign is called a cofactor,

│Cij│. The rule for the sign of the cofactor is
│Cij│=(-1)i+j│Mij│
If the sum of subscripts is an even number,│Cij│=│Mij│, since
(-1) raised to an even power is positive. If i+j is equal to an
odd number, │Cij│=│Mij│, since (-1) raised to an odd power is
negative. A cofactor matrix is a matrix in which every element
aij is replaced with its cofactors │Cij│. If a 3x3 matrix A is given
as

 a11 a12 a13 

A =  a21 a22 a23 
 a31 a32 a33 
then, its Cofactor Matrix will be given by C’. It will be

 C11 C12 C13 

C ' = C21 C22 C23 
C31 C32 C33 
Inverse of a matrix:
Given A, a 3X3 nonsingular matrix. Its inverse can be
calculated using its determinant and Adjoint. Inverse of
matrix exists only if its determinant is nonzero.
1
A −1 = (Adjoint A)
|A|

 C11 C21 C31 

1 
A −1
= C C22 C32 
| A |  12
C13 C23 C33 
Institute of Lifelong Learning, University Of Delhi 27
 Matrix Algebra

Linear Algebra: It is that branch of mathematics that deals with the system of
linear equations, matrices, vectors and determinants.

Minors: A minor │Mij│ is the determinant of the sub matrix formed by

deleting the ith row and jth column of the matrix. Thus, a minor
│M11│is the determinant of the sub matrix formed by deleting
first row and first column. │M11│ is the minor of a11.Given a 3x3
matrix A

 a11 a12 a13 

 a 22 a 23 
A =  a21 a22 a23  │M11│ = 
 a31 a32 a33   a 32 a 33 

It’s determinant will be (a22a33-a23a32).│M22│ is the minor of a22.

It’s the determinant of the sub matrix formed by deleting
second row and second column.

Sub matrix: A sub matrix of a matrix is obtained by deleting any

combination of rows and/ or columns. Minors and cofactors are
calculated by computing the determinant of certain sub
matrices.

Triangular matrix: A matrix A of the order m x n is known as a triangular matrix if

aij= 0 for all i>j or i<j, where i represents ith row and j
represents jth column. A matrix will be a triangular matrix if all
elements either below (or above) the main or principal diagonal
are zero. It need not be a square matrix. There are two kinds of
triangular matrices: Upper Triangular (if aij=0 for all i>j) and
Lower Triangular (if aij= 0 for all i<j). A is an upper triangular
matrix and B is a lower triangular matrix.

1 2 3  1 0 0 
A = 0 4 5  B =  2 4 0 

0 0 6   3 5 6 

Nonsingular
Matrix: A square matrix with a nonzero determinant is called full-rank matrix
a nonsingular matrix. A singular matrix is the one whose determinant
equal to zero.

Exercise:
A. Objective Type Questions

Institute of Lifelong Learning, University Of Delhi 28

 Matrix Algebra

I Fill in the blanks:

1) A matrix having only one row is called a _____matrix.
2) Two matrices can be added if they are of same______.
3) A matrix in which the number of rows are equal to the number of columns is
called a _____matrix.
4) Inverse of matrix exits only if determinant of that matrix is _________.
5) If │A│ = ________ , then the system of equations will either have no solution
or infinite many solutions.
6) In input-output analysis, (I - A) is called a ___________ matrix.
7) In input-output analysis, for the system to be viable, one of the conditions is
the diagonal elements (a11,a22,a33,…ann) of technology matrix should be
____________ .
8) The elements of (I-A)-1are called ___________ multipliers.
9) If a set of vectors is not linearly independent, then they are said to be
_______________________.
10) A _________is a matrix having either only one row or one column.

II. State true or false:

1) A triangular matrix should be a square matrix.
2) Two matrices can be multiplied if the number of rows in a pre factor matrix is
equal to the number of columns in a post factor matrix.
3) A system of homogeneous equations is always consistent.
4) A system of equations will have a unique solution only if │A│ is positive.
5) For a system of equations to be homogeneous, at least one of the right hand
side constants should be non-zero.
6) In input-output analysis, determinant of (I-A) matrix should be positive to
ensure that the system gives positive output values.
7) Transpose of an inverse of a matrix is the same as inverse of a transpose of a
matrix.
8) The vertical summation of technology matrix should be less than 0, when aijs
are expressed in monetary terms.
9) A set of n-dimensional vectors A1, A2&A3 …An is said to be linearly
independent if the linear combination
X1A1 + x2A2 + x3A3+……+xnAn =0
when all xi’s (i= 1 to n) are equal to zero .
10) The basic condition for the scalar product of two vectors is that, both the
vectors should be column vectors.
B. Short answer type questions:
1) What is a matrix? Explain row, column, null and identity matrix in brief.
2) What do you mean by a set of linearly independent vectors? Give one
example.
3) Differentiate between linearly independent and linearly dependent vectors.
4) Explain rank of a matrix.
Institute of Lifelong Learning, University Of Delhi 29
 Matrix Algebra

5) Differentiate between open and closed model in input-output analysis.

6) A system of homogeneous equations is always consistent.Why?
7) State Hawkins-Simon conditions for the viability of the system under input-
output analysis.
8) What are the three operations under Elementary Row Transformations
(ERTs)?
9) When the system of equations is said to be consistent or inconsistent?
10) What is the economic interpretation of an open model under input-output
analysis?
Answersto Objective Type Questions:
I Answers to Fill in the blanks:
1. row 2.order 3.square 4. non-zero
5. Zero 6. Leontief 7. Less than one 8.sectoral
9. Linearly dependent 10. vector.
II. Answers to State True and False:
1. False 2.False 3.True 4.False
5. True 6. True 7. True 8. False
9. True 10.False

C. Numerical Questions:
Solve the given problems:
1) Find the rank of the matrix

1 2 1 − 1 1 0 2 1
   
(i) A = 9 5 2 2  (ii) B = 0 2 4 2
7 1 0 4  0 0 2 1
 

2) Examine the linear independence or dependence of the set of vectors [3,2,4],

[1,0,2] and [1, -1,1].
3) Are the two vectors linearly dependent u=[4 8] v=[12 24]?
4) The prices of three goods X,Y, and Z in a shop are Rs.10, Rs.12 and Rs.20
respectively. Customer A buys 10 units of X, 8 of Y and 4 units of Z. Customer B
buys 9 units of X, 6 units of Y and 5 units of Z. Express the information in
matrices and compute the amount spent by each of the two customers.
5)The equilibrium condition for two substitute goods is given by:10P1-4P2= 30
and -2P1 + 16P2. Using matrices, compute the equilibrium prices.
6) Given the IS equation 0.3Y +100i -252=0 and the LM equation is 0.25Y- 200i-
176=0(where Y is the income level and i is the rate of interest). Using matrix
inverse method, find the equilibrium income level and the rate of interest.
7) For the following input-output table, calculate the technology matrix and also
write the set of balancing equations for the two sectors. The figures are in
physical units. Test the Hawkins-Simon condition for the viability of the system.
Interpret the table below: row-wise and column wise.

SECTOR A B FINAL DEMAND

Institute of Lifelong Learning, University Of Delhi 30

 Matrix Algebra

A 50 150 200

B 100 75 100

Primary Input 40 25

8) Consider an economy which has only three sectors X, Y and Z. For each tonne
of X produced, 0.1 tonne of Z, 0.2 tonne of Y and 0.4 tonne of X is required. To
produce 1 tone of Y, 0.2 tonne of X and 0.2 tonne of Y is required only. To
produce 1 tonne of Z, 0.3 tonne of Y and 0.3 tonne of Z is only required. In a
particular year the final demand is 2 million tone for X, 4 million tone for Z and
20 million tonne for Y. Construct an input-output model for the economy and
compute the output needed from each of the three sectors to meet the final
demand. If [2, 3, 4] is the labour required to produce a unit of X,Y, and Z and
wage rate is Rs. 40 per labour day, calculate total labour days required and the
total value added. Compute the equilibrium prices also for the three sectors.
9) An amount of Rs.70,000 is placed in three different savings accounts with
annual interest rates of 5%, 8% and 8.5%. The total annual yield from these
accounts is Rs.5,500. Equal amounts has been placed in the 5% and 8% saving
accounts. Using matrices, calculate amounts placed in each account.
10) A toy manufacturer makes two types of dolls A and B. Each doll of type A
takes twice as long to produce as one doll of type B and he makes 200 dolls of
type B per week. The person who makes dresses for the dolls can prepare
dresses for either 120 dolls of type A or 180 dolls of type B in a week. The plastic
is available to produce 160 dolls (type A and type B combined)per week. Using
ERTs determine how many dolls of each type can be prepared per week to utilize
all resources.

Answers to Numerical Questions:

1. (i) rank=2 (ii) rank=3; 2.linearly independent; 3.Yes; 4. Amount spent by
A= Rs. 274, amount spent by B =Rs. 262; 5. P1= Rs.3.62 and P2=RS.2.26;
6. Y=Rs.800, i=12%; 8. X=13.77 mt, Y=31.32mt, Z=7.15mt, 150 labour days,
Value Added= Rs.6000, P1=Rs.269.87, P2=Rs.268.21, P3=Rs.401.66;
9. Rs.11,250, Rs.11,250, Rs.47,500; 10. Type A=40 dolls and Type B=120
dolls.

References:
Work cited and Suggested Readings:
• Allen, R.G.D., “Mathematical Analysis for Economists”, London: English
Language Book Society and Macmillan, 1974.
• Kapoor, V.K. “Business Mathematics”, Delhi: Sultan Chand & Sons.
• Thukral, J.K. “Mathematics for Business Studies”, Noida: Scholar Tech
Press, 2013.
• Bhardwaj, R.S.,”Mathematics for economics and business”, Delhi:
Excel Books, 2005.
• Dowling, Edward,T. “Schaum’s Outline Series: Theory and Problems of
Mathematics for Economists”, New York: McGraw Hill Book Company,
1986.

Institute of Lifelong Learning, University Of Delhi 31

 Matrix Algebra

• Chiang, Alpha, C. “Fundamentals Methods of Mathematical

Economics”, Auckland: McGraw Hill Book Company, 1987, Third
edition.
• Archibald, G.C., Richard G.Lipsey. “An Introduction to A mathematical
Treatment of Economics”, Delhi: All India Traveller Bookseller, 1984
• Soni, R.S., Soni, AvneetKaur.”Mathematics for Business, Economics
and Finance”, New Delhi: Ane Books Pvt.Ltd., 2011.
• Simon, Carl P., Lawrence Blume, “Mathematics for Economists”, New
Delhi: Viva Books Private Limited, 2006.
• Yamane, Taro, “Mathematics for Economists: An Elementary Survey”,
New Delhi: Prentice Hall of India Private Limited, 1970.

Institute of Lifelong Learning, University Of Delhi 32