Quiz 3 - P(t(general solution(b What is the intertemporal...

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Quiz 3 Total Marks 15 Lahore School of Economics Mathematics for Economics Winter 2011 Name:_____________________ Section:_______________ Date:______________________ Score:________________ Q1. Let demand and supply be [10] , (a) Assuming that the rate of change of price over time is directly proportional to the excess demand, find the time path
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Unformatted text preview: P(t) (general solution). (b) What is the intertemporal equilibrium price? What is the market-clearing equilibrium price? (c) What restriction on the parameter would ensure dynamic stability? Q2: (a) Solve [3] (b) Under what conditions the model with is dynamically stable. [2]...
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