HomeHomework HelpTextbooksTest PrepTextbook Answers
Zookal Homework Help

Homework Help

  1. Math
  2. Advanced Math
  3. s an economist is interested in the variation of the...

Question: s an economist is interested in the variation of the...

Question details

S. An economist is interested in the variation of the price of gle product. It is ob- served that a high price fo the product in the market attracts more suppliers. However. increasing the quantity of te product supplied tends to drive the price down. Over time. there is an interaction between price and supply. The economisths proposed the following model. where P represents the price of the product at year and . represents the quantity. Find the equilibrium values for this system a. Does the model make sense intuively? What is the significance of the constants 100 and 500? Explain the significance of the signs of the constants- and 0.2 b. Test the initial conditions in the following table and prediet the long-ter behavior Price Quanti Case A Case B Case C Case D 100 200 100 100 500 50) 6000 400

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution