Consider a competitive market composed of two commodities X, and X with prices P and P...
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Consider a competitive market composed of two commodities X, and X₂ with prices P and P₂ Suppose that demand and supply functions are, q=10-2p₁ +2P₂ q₁=6+2p₁-4P₂ 92=8-3p₂ +2P₁ 92=4+3p₂-P₁ dp dt with dynamic adjustments = |dp₂ = 22. Analyze the stability of the competitive equilibrium. Find =E, and dt the equilibrium prices. Draw the isoclines in the phase plane. Consider a competitive market composed of two commodities X, and X₂ with prices P and P₂ Suppose that demand and supply functions are, q=10-2p₁ +2P₂ q₁=6+2p₁-4P₂ 92=8-3p₂ +2P₁ 92=4+3p₂-P₁ dp dt with dynamic adjustments = |dp₂ = 22. Analyze the stability of the competitive equilibrium. Find =E, and dt the equilibrium prices. Draw the isoclines in the phase plane.
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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