Question: Price Dynamics: Establish a difference equation for following price dynamics model. Find the equilibrium price. Does the price converge to equilibrium in long run? Does

Price Dynamics:

Price Dynamics: Establish a difference equation for following price dynamics model. Find

Establish a difference equation for following price dynamics model. Find the equilibrium price. Does the price converge to equilibrium in long run? Does it exhibit oscillations? Sketch time graph of price with EXCEL Pe = P4-1 + 2(Pt - P-1) Po = 20 lat = 100 3Pt lst = -35 + 3P6 Establish a difference equation for following price dynamics model. Find the equilibrium price. Does the price converge to equilibrium in long run? Does it exhibit oscillations? Sketch time graph of price with EXCEL Pe = P4-1 + 2(Pt - P-1) Po = 20 lat = 100 3Pt lst = -35 + 3P6

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