Consider the supply and demand equations Q St = 0.4P t1 12 Q Dt = 0.8P

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Consider the supply and demand equations
QSt = 0.4Pt−1 − 12
QDt = −0.8Pt + 60

Assuming that equilibrium conditions prevail, find an expression for Pt when P0 = 70. Is the system stable or unstable?

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