A linear equation is an equation which consists of only sums of variables and variables which are multiplied by a constant, with no products of variables. All of the variables in the equation must be raised to the power of one. The general form of a linear equation is:
ax + b = 0
where aa and bb are constants and a ≠ 0. Solving a linear equation means finding the values of x which satisfy the equation (make the expression on the left-hand side of the = sign equal to zero).
Examples of equations in economics which are often linear include budget constraints and demand and supply functions.
