Question: Consider the following equations = 40 22 = 20 + 3 (0) = 12, (0) = 1 Find () under the assumption the market clears

Consider the following equations = 40 22 = 20 + 3 (0) = 12, (0) = 1 Find () under the assumption the market clears at every time Is the solution dynamically stable? If so what is the long run equilibrium price?

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