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Let us look at the two equations

y1 = 2x0 + 3y0
x1 = 3x0 - y0

If we plug in a coordinate pair (x0, y0), then we get a new coordinate pair (x1, y1). We can represent this transformation in a simpler form by just writing the coefficients in a matrix.

A =

2 3
3 -1

If we continue now and make the transformation

y2 = x1 + 2y1
x2 = -2x1 - y1

then we get a new pair (x2, y2). The transformation can again be represented by the matrix

B =

1 2
-2 -1

If we drop the middle step, the calculation of (x1, y1), and go directly from (x0, y0) to (x2, y2), then one can figure out that the transformation is

y2 = 8x0 + y0
x2 = -7x0 - 5y0

The matrix here is

C =

8 1
-7 -5

and we call this the product of the matrices B and A. We write

C = B × A.

We can also add two matrices together by adding the numbers position by position

A + B =

3 5
1 -2

This gives us an algebraic system where we can add, subtract and multiply. But we can not always divide. Such sets resemble the integers. But there is a fundamental difference.

Read on about commutative versus noncommutative systems.