Consider the following solutions in the model for quantity demanded D, and quantity supplied P: 1...

 

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Consider the following solutions in the model for quantity demanded D, and quantity supplied P: 1 P₁=(D+Po)+(Po-D₂)(1-2k)". 1 Da=(Do+ P) + (Do-P)(1-2k)". where P is the level production after n time intervals, D, is the quantity demanded by the consumer and k is a constant. 1. Choose any values for the initial quantity demanded D, and the initial quantity supplied P to plot the graphs for D vs n and P vs n when k = 0.3. Indicate the values for D, and P you used. (8 Points) 2. Using the graphs you plotted, describe the behaviour of the quantity demanded D (2 Points) Consider the following solutions in the model for quantity demanded D, and quantity supplied P: 1 P₁=(D+Po)+(Po-D₂)(1-2k)". 1 Da=(Do+ P) + (Do-P)(1-2k)". where P is the level production after n time intervals, D, is the quantity demanded by the consumer and k is a constant. 1. Choose any values for the initial quantity demanded D, and the initial quantity supplied P to plot the graphs for D vs n and P vs n when k = 0.3. Indicate the values for D, and P you used. (8 Points) 2. Using the graphs you plotted, describe the behaviour of the quantity demanded D (2 Points)