Exercise 3.6 A market for a commodity is modelled by the demand and supply functions qD(p)=3p,qS(p)=p. What is the equilibrium price? The market is initially not in quilibrium and at any time t1 the current price pt is related to the price in the previous period pt1 by the equation pt=(1+r)pt1+k(qD(pt1)qS(pt1)), where r,k are positive constants with k>r. ( r may be thought of as a measure of the rate of inflation.) At time t=0 the price is p0=1. Solve this equation and show that over time the price tends to a limiting value if and only if kr. ( r may be thought of as a measure of the rate of inflation.) At time t=0 the price is p0=1. Solve this equation and show that over time the price tends to a limiting value if and only if k