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.

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