A pair of equations like this are called simultaneous equations - because you are trying to solve them both with the same values for \(x\) and \(y\).

For more information on these methods, see the references at the end of this chapter. There are two fundamental methods of estimation for simultaneous equations: least squares and maximum likelihood.

You can use a SOLVE statement to solve the nonlinear equation system for some variables when the values of other variables are given. Consider the demand and supply model shown in the preceding ...