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Assume an inverse demand curve P(t)= 100-Q(t) and a supply curve Q(t)= 30 +0.5 p (t-1). A shift up in demand in such a market
Assume an inverse demand curve P(t)= 100-Q(t) and a supply curve Q(t)= 30 +0.5 p (t-1). A shift up in demand in such a market will
a) yield a new equilibrium at a lower price rights away
b) Yield diverging oscillations in prices and quantities
c) Yield converging oscillations in prices and quantities
d) yield oscillations in prices and quantities that go on forevr
e) none of the above
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