Demand and supply for a particular product depend on current price. Sellers determine future price on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Demand and supply for a particular product depend on current price. Sellers determine future price on the basis of current price and excess demand. If excess demand increases, they raise price, while in the opposite case, they lower it. Find the time path of price if the specific forms of the functions are q=100-5p₁ q = -80+10p, P₁+1=P₁ +0.1(q-q;) Demand and supply for a particular product depend on current price. Sellers determine future price on the basis of current price and excess demand. If excess demand increases, they raise price, while in the opposite case, they lower it. Find the time path of price if the specific forms of the functions are q=100-5p₁ q = -80+10p, P₁+1=P₁ +0.1(q-q;)
Expert Answer:
Answer rating: 100% (QA)
In a state of equilibrium the quantity demanded q and the quantity supplied q are equal Therefore we can set the two equations equal 100 5p 80 10p Solve for Price Lets find the equilibrium price p by ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
-
The following relations describe monthly demand and supply for a computer support service catering to small businesses. QD = 3,000 - 10P QS = -1,000 + 10P where Q is the number of businesses that...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
State the date (or dates) on which corporation tax is due for payment in relation to the following periods of account: (a) the year to 31 March 2021 (b) the six months to 30 November 2020 (c) the 21...
-
In Figure the battery has a potential difference of V = 10.0 V and the five capacitors each have a capacitance of 10.0F, what is the charge on (a) Capacitor 1 and (b) Capacitor 2?
-
Using these reactions, find the standard enthalpy change for the formation of 1 mol of PbO(s) from lead metal and oxygen gas. PbO(s) + C(graphite) Pb(s) + CO(g) H = 106.8 kJ 2 C(graphite) + O 2 (g) ...
-
Starting from fundamentals, show that the equation for the lateral vibration of a circular membrane is given by \[\frac{\partial^{2} w}{\partial r^{2}}+\frac{1}{r} \frac{\partial w}{\partial...
-
Turn to Part C of the Systems Analysts Toolkit and review the concept of net present value (NPV). Determine the NPV for the following: An information system will cost $95,000 to implement over a...
-
Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1, 20x4, for $351,000, when the fair value of its net identifiable assets was $464,000 and the fair value...
-
Let X be the winnings of a gambler. Let p(i) = P(X = i) and suppose that Compute the conditional probability that the gambler wins i , i = 1, 2, 3, given that he wins a positive amount. 1/3: p(1) %3...
-
How can I write an email to a local media(radio station, newspaper) letting them know about the Love 4 Animals clinic is moving in two weeks in a new location.
-
Show that the series k = 0 ( 1 ) k k + 2 x k has a sum function f : ( 1 , 1 ) R given by f ( x ) = x 2 1 ( x l o g ( 1 + x ) ) , x = 0 and f(0) = 1/2.
-
In 2015 a movie with Christian Bale called, "The Big Short" came to theaters. This week, the text discusses real estate mortgages. An Internet search, or watch the movie, and then in a post briefly...
-
How do you determine the distribution (mean/standard deviation) around the target fill volume for different size bottles ( Liter, 1 Liter, 2 Liter and 4 Liter) on a production line?
-
Show that, for a fixed sequence of individual preference lists and an odd number of voters, an alternative is a Condorcet winner if and only if it emerges as the social choice in sequential pairwise...
-
Consider the discrete metric we defined in the last question of the previous homework: on the set ={,,,}X={a,b,c,e}, we let (,)=1 if y and (,)=0 for all , You showed that there are two different ways...
-
Gabriella Boucher, the CEO of Prestige Outlets, a specialty retailing store, believes that she can take the company private via an LBO. Exit would occur in 3 years. Prestige currently has 5 million...
-
Would you use the adjacency matrix structure or the adjacency list structure in each of the following cases? Justify your choice. a. The graph has 10,000 vertices and 20,000 edges, and it is...
-
Multiple Choice Questions: 1. In Littletown, the population includes 1,000 people over the age of 16; 800 are in the labor force, and 600 are employed. The unemployment rate is a. 33 percent. b. 25...
-
Explain why an equal dollar increase in both government purchases and net taxes would increase aggregate demand.
-
Why was home building such an important factor in this crisis?
-
A hot dog at \(5^{\circ} \mathrm{C}\) is to be cooked by dipping it in boiling water at \(100^{\circ} \mathrm{C}\). Model the hot dog as a long cylinder with a diameter of \(20 \mathrm{~mm}\). Find...
-
A finite cylinder is \(2 \mathrm{~cm}\) in diameter and \(3 \mathrm{~cm}\) long and at a temperature of \(200^{\circ} \mathrm{C}\), and is cooled in air at \(30^{\circ} \mathrm{C}\). The convective...
-
The fact that the eigenfunctions are orthogonal can be verified easily using the symbolic calculations in MATLAB or MAPLE. But the underlying theory is based on the SturmLiouville problem. You may...
Study smarter with the SolutionInn App