a) b) c) d) Given quantity demanded Qd = p 2 and quantity supplied Qs = 8p in a market, what could you infer about the dynamic stability of the intertemporal equilibrium market price? (Consider that price adjusts according to excess demand) stable at p=1/2 unstable at p=1/2 stable at p= 2 stable at p=1/8
a) b) c) d) Given quantity demanded Qd = p 2 and quantity supplied Qs = 8p in a market, what could you infer about the dynamic stability of the intertemporal equilibrium market price? (Consider that price adjusts according to excess demand) stable at p=1/2 unstable at p=1/2 stable at p= 2 stable at p=1/8
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Economic
![a)
b)
Given quantity demanded Qd = p¯2 and quantity supplied Qs = 8p in a market, what could you infer about the
dynamic stability of the intertemporal equilibrium market price? (Consider that price adjusts according to excess
demand)
stable at p=1/2
unstable at p=1/2
stable at p= 2
stable at p=1/8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d01b29-ede7-42ba-8dcd-8c0b18e94cc8%2F2e982f40-4c3f-4ee2-982c-7764862afd7b%2Fd29481n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a)
b)
Given quantity demanded Qd = p¯2 and quantity supplied Qs = 8p in a market, what could you infer about the
dynamic stability of the intertemporal equilibrium market price? (Consider that price adjusts according to excess
demand)
stable at p=1/2
unstable at p=1/2
stable at p= 2
stable at p=1/8
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