Consider the supply and demand equations Q St = 0.4P t1 12 Q Dt = 0.8P

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Consider the supply and demand equations
Q_St = 0.4P_t−1 − 12
Q_Dt = −0.8P_t + 60

Assuming that equilibrium conditions prevail, find an expression for P_t when P₀ = 70. Is the system stable or unstable?

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Mathematics for Economics and Business

ISBN: 978-1292191669

9th edition

Authors: Ian Jacques

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Question Posted: Apr 18, 2019 10:24 AM

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Consider the supply and demand equations Q St = 0.4P t1 12 Q Dt = 0.8P

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In equilibrium 04P112 08P 60 08P 04Pt1...View the full answer

Mathematics for Economics and Business

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