Intro to Mathematical Economics

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Homogeneous System

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Intro to Mathematical Economics

Definition

A homogeneous system is a type of system of linear equations where all the constant terms are equal to zero. This means that the equations can be expressed in the form $$Ax = 0$$, where A is a matrix of coefficients and x is a vector of variables. A homogeneous system always has at least one solution, which is the trivial solution where all variables are set to zero. However, it can also have infinitely many solutions depending on the relationships between the equations.

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5 Must Know Facts For Your Next Test

  1. A homogeneous system always has at least one solution: the trivial solution, where every variable equals zero.
  2. If a homogeneous system has more equations than unknowns, it may still have infinitely many solutions or just the trivial solution depending on the rank.
  3. The solutions to a homogeneous system form a vector space, which means they can be combined through addition and scalar multiplication.
  4. If the determinant of the coefficient matrix is zero, this indicates that the system may have infinite solutions or no unique solution at all.
  5. Homogeneous systems are often used in various applications such as economics, physics, and engineering to model equilibrium conditions.

Review Questions

  • How do you determine if a homogeneous system has only the trivial solution or infinitely many solutions?
    • To determine whether a homogeneous system has only the trivial solution or infinitely many solutions, you should analyze the rank of the coefficient matrix. If the rank equals the number of variables, then the only solution is the trivial one. However, if the rank is less than the number of variables, then there will be infinitely many solutions due to free variables existing within the system.
  • What is the significance of the determinant in relation to homogeneous systems, and how does it affect solutions?
    • The determinant of the coefficient matrix plays a crucial role in determining the nature of solutions for homogeneous systems. If the determinant is non-zero, this indicates that there is a unique solution: just the trivial solution. Conversely, if the determinant equals zero, it suggests that there are either infinitely many solutions or no unique solution due to linear dependence among equations.
  • Evaluate how understanding homogeneous systems impacts real-world applications in fields like economics or engineering.
    • Understanding homogeneous systems is essential in fields like economics and engineering because they provide insight into equilibrium states and constraints. For instance, in economics, they can model market equilibrium where supply equals demand, helping predict outcomes under various scenarios. In engineering, they help analyze systems where multiple forces are balanced. By studying these systems, professionals can make informed decisions based on stability and feasibility of outcomes in complex situations.
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