Answer to Question #328581 in Microeconomics for Axis

Question

5. Considering the following supply and demand equations (20 Points):

𝑄𝑠 = 3𝑃 − 1

𝑄𝑑 = −2𝑃 + 9

𝑑𝑃/𝑑𝑡 = 0.5(𝑄𝑑 − 𝑄𝑠)

a) Find the expressions. 𝑃(𝑡), 𝑄𝑠(𝑡), and 𝑄𝑑(𝑡). When 𝑃(0) = 1, is the system stable or unstable?

b) If the constant for the change of excess of demand changes to 0.6, this is:

𝑑𝑃/𝑑𝑡 = 0.6(𝑄𝑑 − 𝑄𝑠)

do 𝑃(𝑡), 𝑄𝑠(𝑡), and 𝑄𝑑(𝑡) remain the same when 𝑃(0) = 1?

Answer 1

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