(e) Given the following demand and supply functions for the cobweb model, find the intertemporal equililibrium price and determine whether the equilibrium is stable. (i) (ii) (iii) Qdt =14 – 3P| Qdt =11 – 2P1 Qdt =19 – 6P1 Qst = -5 + 3P,-1 Qst = -3 + Pr-1 Qst = -7 + 5Pt-1 %3D

(e) Given the following demand and supply functions for the cobweb model, find the intertemporal equililibrium price and determine whether the equilibrium is stable. (i) (ii) (iii) Qdt =14 – 3P| Qdt =11 – 2P1 Qdt =19 – 6P1 Qst = -5 + 3P,-1 Qst = -3 + Pr-1 Qst = -7 + 5Pt-1 %3D

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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Question

(e) Given the following demand and supply functions for the cobweb model, find the intertemporal
equililibrium price and determine whether the equilibrium is stable.
(ii)
(iii)
Qát =14 – 3P,
Qát =11 – 2P1
Qdt =19 – 6P1
Qst = -5 + 3P-1
Qst = -3 + Pt-1
Qst = -7+ 5P-1

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