Elements of Numerical Mathematical Economics with Excel

3.6. Equilibrium in n markets

The objective of this model is to compute the equilibrium price in n-perfect competitive markets via their available schedules of demands and supplies. We will see in Chapter 6, that in the perfect competitive markets the price is determined via the interaction of demand and supply, and these prices have to be taken as given by the multitude of firms operating in the market.

Figure 3.5-1 Worksheet setup for the Solver solution.

Figure 3.5-2 Solver setup for the Leontief model.

In matrix notation, we ...