Problem 1. Consider a market in which the supply and demand sets are S = {(q,p) q-3p-7}, D = {(q,p) q=38 12p}. Write down the recurrence equation which determines the sequence pt of prices, assuming that the suppliers operate according to the cobweb model. Find the explicit solution given that po 4, and describe in words how thw sequence pt behaves. Write down a formula for qt, the quantity on the market in year t.