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4. The figures below show the market demand and supply curves of a share in a company and its adjustment process. Two different price dynamic

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4. The figures below show the market demand and supply curves of a share in a company and its adjustment process. Two different price dynamic curves (PDE, and PDEz) are shown. Based on the figures, determine whether each of the following statements are true or false. Adjustment process Price, P PDE, P.= PHI Supply -PDE P.. Demand 45 P Quantity, Q Price shock (a) Both PDE, and PDEz lead to bubbles. (b) PDE2 is an example of a stable equilibrium. (c) With PDE1, if P, is greater than Po then P2 would be less than Po. (d) With PDE2, if P1 is greater than Po then P2 would be greater than Pi

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