Question 12 Assume that a market is described by the following supply and demand functions: Q? = 3Pt-1 – 10; Q? = –2P¿ + 50 (a) Derive a difference equation in price and find its general solution. (b) Further assume the initial price P, = 15, find the unique solution, using words describe the path of P from to to t6, and provide your comments.

Question 12 Assume that a market is described by the following supply and demand functions: Q? = 3Pt-1 – 10; Q? = –2P¿ + 50 (a) Derive a difference equation in price and find its general solution. (b) Further assume the initial price P, = 15, find the unique solution, using words describe the path of P from to to t6, and provide your comments.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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