Let’s Dig Deeper!

It was explained in Lesson 1 the way to solve single linear equations. We now turn to
linear equations with more than one unknown variable. A simultaneous linear equation
system exists when:

1. there is more than one functional relationship between a set of specified

variables, and;
2. all the functional relationships are in linear form.
After completing this lesson, students should be able to:
Solve sets of simultaneous linear equations with two or more variables using
the substitution and row operations methods.
Relate mathematical solutions to simultaneous linear equations to economic
analysis.
Recognize when a linear equations system cannot be solved.

The basic idea involved in all the different methods of algebraically solving
simultaneous linear equation systems is to manipulate the equations until there is a
single linear equation with one unknown. The solution to a set of simultaneous
equations involves finding values for all the unknown variables and it may be done in
so many ways.

Graphical Solutions

If it only involves two variables and equations, graphical solutions can be used, 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)

If this market is in equilibrium, then the equilibrium price and quantity will be where the
demand and supply schedules intersect. As this will correspond to a point which is on
both the demand schedule and the supply schedule then the equilibrium values of p
 and q will be such that both equations (1) and (2) hold. In other words, when the market
is in equilibrium (1) and (2) above form a set of simultaneous linear equations.

Example 3.1

Solve for p and q in the set of simultaneous equations given above.

𝑝 = 420 – 0.2𝑞
𝑝 = 60 + 0.4𝑞

Solution:

These two functional relationships are plotted in Figure 3.1 below. Both hold at the
intersection point (600,300) which has an “X” mark. At this point the solution values
𝑝 = 300 and 𝑞 = 600

can be read off the graph.

Figure 1.1

𝑝 = 60 + 0.4𝑞

𝑝 = 420 – 0.2𝑞

Example 3.2

Use the graphical method in attempting to solve for x and y given with the following
functions:

𝑦 = 2 + 2𝑥 (1)
𝑦 = 5 + 2𝑥 (2)
Solution:

Figure 3.2

Obviously, the functions are parallel lines which will never intersect as plotted in
Figure 3.2, thus, it does not have a solution.

Check Your Progress 12

Find x and y when 𝑥 = 80 − 0.8𝑦 and 𝑦 = 10 + 0.1𝑥.

Equating to same variable

The method of equating to the same variable can be used which involves rearranging
both equations so that the same unknown variable appears by itself on one side of the
equality sign. This variable can then be eliminated by setting the other two sides of the
equality sign in the two equations equal to each other. The resulting equation in one
unknown can then be solved.

Example 3.3
Solve the set of simultaneous equations in Example 3.1 using the equating method.
Solution:
𝑝 = 420 – 0.2𝑞

and

𝑝 = 60 + 0.4𝑞

420 – 0.2𝑞 = 60 + 0.4𝑞

 420 − 60 = 0.4𝑞 + 0.2𝑞
360 = 0.6𝑞
600 = 𝑞
With the value of 𝑞 we found; we now can substitute this value into either of the two
equations. Thus,
(1) 𝑝 = 420 – 0.2𝑞 = 420 − 0.2(600) = 420 − 120 = 300

or

(2) 𝑝 = 60 + 0.4𝑞 = 60 + 0.4(600) = 60 + 240 = 300

Example 3.4

Assume that a firm can sell as many units of its product as it can manufacture in a
month at £18 each. It has to pay out £240 fixed costs plus a marginal cost of £14 for
each unit produced. How much does it need to produce to break even?

Solution:

We can work out this problem using these functions:

𝑇𝑅 = 18𝑞
𝑇𝐶 = 240 + 14𝑞

where 𝑞 is output.

These functions are plotted in Figure 3.3 which is an example of a break-even chart.
It clearly shows that the break-even point is where the “x” mark is, where TR and TC
intersects. Since,
𝑇𝑅 = 18𝑞 and 𝑇𝐶 = 240 + 14𝑞

and the break-even point is where 𝑇𝑅 = 𝑇𝐶, then

18𝑞 = 240 + 14𝑞

18𝑞 − 14𝑞 = 240
4𝑞 = 240
4𝑞 240
=
4 4
𝑞 = 60

Therefore, the output required to break even is 60 units.

Figure 3.3

Example 3.5
Solve for x and y using the equating the same variable method with the given
equation in Example 3.2.
Solution:
2 + 2𝑥 = 5 + 2𝑥
2 + 2𝑥 − 2𝑥 = 5 + 2𝑥 − 2𝑥
2=5
This is clearly impossible, hence there is no solution for this.

Check Your Progress 13

If y = 16 + 22x and y = −2.5 + 30.8x, solve for x and y.

Substitution
The substitution method involves rearranging one equation so that one of the unknown
variables appears by itself on one side. The other side of the equation can then be
substituted into the second equation to eliminate the other unknown.

Example 3.6

Solve the linear simultaneous equation system

20𝑥 + 6𝑦 = 500 (1)
10𝑥 − 2𝑦 = 200 (2)
Solution:
Equation (2) can be rearranged to give us a value of y
10𝑥 − 200 = 2𝑦
10𝑥 − 200 2𝑦
=
2 2
5𝑥 − 100 = 𝑦 (3)

If we substitute the equation we just found (3) for y in equation (1) we will get
20𝑥 + 6𝑦 = 500
20𝑥 + 6(5𝑥 − 100) = 500
20𝑥 + 30𝑥 − 600 = 500
20𝑥 + 30𝑥 = 500 + 600
50𝑥 = 1,100
50𝑥 1,100
=
50 50
𝑥 = 22
To find the value of y, we substitute the value of x to either of the two given
equations. Thus,
10𝑥 − 2𝑦 = 200 (1)
10(22) − 2𝑦 = 200
220 − 2𝑦 = 200
−2𝑦 = 200 − 220
−2𝑦 = −20
−2𝑦 −20
=
−2 −2
𝑦 = 10

20𝑥 + 6𝑦 = 500 (2)

20(22) + 6𝑦 = 500
440 + 6𝑦 = 500
 6𝑦 = 500 − 440
6𝑦 = 60
6𝑦 60
=
6 6
𝑦 = 10

Example 3.7
Find the equilibrium level of national income in the basic Keynesian macroeconomic
model
𝑌 = 𝐶 + 𝐼 (1)
𝐶 = 40 + 0.5𝑌 (2)
𝐼 = 200 (3)
Solution:
Substituting the function that represents the consumption and the given value for 𝐼 to
the equation (1) we get
𝑌 = 𝐶 + 𝐼
𝑌 = 40 + 0.5𝑌 + 200
Therefore,
𝑌 − 0.5𝑌 = 40 + 200
0.5𝑌 = 240
0.5𝑌 240
=
0.5 0.5
𝑌 = 480

Check Your Progress 14

Solve for 𝑥 and 𝑦 when

600 = 3𝑥 + 0.5𝑦 (1)

52 = 1.5𝑦 − 0.2𝑥 (2)
Row operations
Row operations involve multiplying or dividing all terms of an equation by any
necessary number to get the same coefficient of one of the unknown variables of the
other equation. Then, subtracting one equation from the other, the unknown variable
can be eliminated.
One may also use addition when the two equations have the same value for the
coefficient of the unknown variable but differ in signs, then addition may use as an
alternative to eliminate the unknown.
Example 3.8
Given the two equations below, use row operations to solve for x and y.
10𝑥 + 3𝑦 = 250 (1)
5𝑥 + 𝑦 = 100 (2)

Solution:
Multiply equation (2) by 2, this gives 10𝑥 + 2𝑦 = 200
Subtracting (2) from (1) multiplied (2) by 2 10𝑥 + 3𝑦 = 250
10𝑥 + 2𝑦 = 200
Gives 𝑦 = 50
Substituting this value of y into either of the two equations,
10𝑥 + 3𝑦 = 250 (1)
10𝑥 + 3(50) = 250
10𝑥 + 150 = 250
10𝑥 = 250 − 150
10𝑥 = 100
10𝑥 100
=
10 10
𝑥 = 10
or
5𝑥 + 𝑦 = 100 (2)
5𝑥 + 50 = 100
5𝑥 = 100 − 50
5𝑥 = 50
5𝑥 50
=
5 5
𝑥 = 10
Example 3.9
A firm makes two goods A and B which require two inputs K and L. One unit of A
requires 6 units of K plus 3 units of L and one unit of B requires 4 units of K plus 5
units of L. The firm has 420 units of K and 300 units of L at its disposal. How much of
A and B should it produce if it wishes to exhaust its supplies of K and L totally?

Solution:
Input K requires 6 for every unit of A and 4 for each unit of B, which can be
represented with this function
𝐾 = 6𝐴 + 4𝐵
On the other hand, the total requirements of L can be written as
𝐿 = 3𝐴 + 5𝐵
We know that 𝐾 = 420 and 𝐿 = 300 because all units were used, then
420 = 6𝐴 + 4𝐵 (1)
and
300 = 3𝐴 + 5𝐵 (2)
Multiplying (2) by 2 600 = 6𝐴 + 10𝐵
Subtracting (1) 420 = 6𝐴 + 4𝐵
180 = 6𝐵
30 = 𝐵
Substituting this value of B into either of the two equations,
420 = 6𝐴 + 4𝐵 (1)
420 = 6𝐴 + 4(30)
420 = 6𝐴 + 120
420 − 120 = 6𝐴
300 = 6𝐴
 300 6𝐴
=
6 6
50 = 𝐴

or
300 = 3𝐴 + 5𝐵
300 = 3𝐴 + 5(30)
300 = 3𝐴 + 150
300 − 150 = 3𝐴
150 = 3𝐴
150 3𝐴
=
3 3
50 = 𝐴
Therefore, the firm should produce 50 units of A and 30 units of B.

Check Your Progress 15

Solve for 𝑥 and 𝑦 when 160 = 8𝑥 − 2𝑦 and 295 = 11𝑥 + 𝑦.

More than two unknowns

With two or more unknown variables, it is best to use row operations method. The
process is to use on pair of equation to eliminate an unknown variable and repeating
the process until a single equation in one unknown is obtained. The exact operation
to use to manipulate the equations will depend on the format of the given problem.
There are several ways to use row operations method in solving problems and you will
only master it by practicing to solve some by yourself.
Example 3.10
Solve for x, y, and z, given that
𝑥 + 12𝑦 + 3𝑧 = 120 (1)
2𝑥 + 𝑦 + 2𝑧 = 80 (2)
4𝑥 + 3𝑦 + 6𝑧 = 219 (3)
Solution:
Multiplying (1) by 2 2𝑥 + 24𝑦 + 6𝑧 = 240 (4)
Subtracting (2) from (4) 23𝑦 + 4𝑧 = 160 (5)
We have now eliminated x from equations (1) and (2) and so the next step is to
eliminate x from equation (3) by row operations using one of the other two equations.
Multiplying (2) by 2 4𝑥 + 2𝑦 + 4𝑧 = 160
Subtracting the above equation from (3) 𝑦 + 2𝑧 = 59 (6)
We now have the set of two simultaneous equations (5) and (6) involving two
unknowns to solve. Writing these out again, we can now use row operations to solve
for y and z.
23𝑦 + 4𝑧 = 160 (5)
𝑦 + 2𝑧 = 59 (6)
Multiplying (6) by 23 23𝑦 + 46𝑧 = 1,357
Subtracting (5) 42𝑧 = 1,197
𝑧 = 28.5
Substituting the value of z to (6)
𝑦 + 2𝑧 = 59
𝑦 + 2(28.5) = 59
𝑦 + 57 = 59
𝑦 = 59 − 57
𝑦=2
The values we found for y and z may be substituted to any of the original equations
to find for x. Using (1), we get
2𝑥 + 𝑦 + 2𝑧 = 80
2𝑥 + 2 + 2(28.5) = 80
2𝑥 + 2 + 57 = 80
2𝑥 + 59 = 80
2𝑥 = 80 − 59
2𝑥 = 21
2𝑥 21
=
2 2
𝑥 = 10.5

Therefore, the solutions are 𝑥 = 10.5, 𝑦 = 2, and 𝑧 = 28.5.

You can also check your answer by substituting all the values to either of the three
equations to confirm your answer.
2𝑥 + 𝑦 + 2𝑧 = 80 (2)
2(10.5) + 2 + 2(28.5) = 80
21 + 2 + 57 = 80
80 = 80

Check Your Progress 16

Solve for x, y and z in the following set of simultaneous equations:

14.5𝑥 + 3𝑦 + 45𝑧 = 340 (1)

25𝑥 − 6𝑦 − 32𝑧 = 82 (2)
9𝑥 + 2𝑦 − 3𝑧 = 16 (3)
 The solution to a set of simultaneous equations may be done in so many ways
i.e. graphical solutions, equating to same variable, substitution, and row
operations.

Chapter 5 pages 122-180 of Rosser, Mike (2003). Basic Mathematics for Economists
(2nd Edition). Routledge, New Fetter Lane, London