Question: In a competitive market where Qd = 5606P and Qs = 46+28.7P the initial price P0 is 50. Derive a function for the time path

In a competitive market where Qd = 560−6P and Qs = −46+28.7P the initial price P0 is £50. Derive a function for the time path of P and use it to predict price in time period 5 given that price adjusts in proportion to excess demand at the rate How many time periods would you have to wait for the price to drop by £20?

16. (a) Find the exact solution to the linear system ( (1:0 .7) (7) = (-60). (b) Solve the system using Gaussian Elimination with 2-digit rounding. (c) Solve the system using Partial Pivoting and 2-digit rounding. (d) Compare your answers and discuss.

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