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In an economic problem the price function p(t), satisfies the function: Ple) = 8 | Dp(v) S(p()] e-av-v) du where D(p) = a - bp
In an economic problem the price function p(t), satisfies the function: Ple) = 8 | D\p(v) S(p()] e-av-v) du where D(p) = a - bp and S(p) = -c + dp and a, b, a, b, d and care positive constants (a) Show that the problem transforms into a second order linear diferential equation and find the equilibrium value of p* (b) Show that the second order linear diferential equation is stable and in which conditions the solution has oscillations about p* Note: If you could not get the equation in a) use p+ap+(6+ d)p = B(a + c)] In an economic problem the price function p(t), satisfies the function: Ple) = 8 | D\p(v) S(p()] e-av-v) du where D(p) = a - bp and S(p) = -c + dp and a, b, a, b, d and care positive constants (a) Show that the problem transforms into a second order linear diferential equation and find the equilibrium value of p* (b) Show that the second order linear diferential equation is stable and in which conditions the solution has oscillations about p* Note: If you could not get the equation in a) use p+ap+(6+ d)p = B(a + c)]
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