ABSTRACT
Where only two variables and equations are involved, a simultaneous equation system can be related to familiar graphical solutions, such as supply and demand analysis. For example, assume that in a competitive market the demand schedule is
p = 420 − 0.2q (1) and the supply schedule is
p = 60 + 0.4q (2) price and will be where the correspond to which is on both
values of p and q will market is in equilibrium (1) and (2) above form a set of simultaneous linear equations.
