Messages
Proposals
Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.
Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support
SMòâA – Mathematics for Economics
Fall òýÔ
Asst. Prof. Nelson Uhan
Lesson ÔÀ.
e Cobweb Model
ý Warm up
Example Ô.
Solve the dierence equation
y
t
+
Ô
+
ç
y
t
=
¥
. Is
y
t
oscillatory or nonoscillatory? Is
y
t
convergent
or divergent?
Ô Overview
●
Market with single product
●
Supply in period
t
is decided
in
pe
riod
t
−
Ô and so is based on the price in period
t
−
Ô
○
e.g. agricultural production: planting must occur a long time before harvesting and selling
●
How does the price of the product change over time?
ò
e model
●
Variables:
P
t
=
unit price at period
t
Q
dt
=
quantity demanded at period
t
Q
st
=
quantity supplied at period
t
●
Parameters:
α
,
β
,
γ
,
δ
>
ý
●
Equations:
Q
dt
=
Q
st
Q
dt
=
α
−
β
P
t
Q
st
=
−
γ
+
δ
P
t
−
Ô
Ô
ç Solving and analyzing the model
●
Substituting the last two equations into the rst, we can reduce the model to:
●
Let’s rewrite this dierence equation by shiing the time subscripts:
●
Note that in this case:
●
We can solve for
P
t
, where
P
ý
represents the initial price:
●
We can interpret
̄
P
=
α
+
γ
β
+
δ
as the intertemporal equilbrium price of the model, and write
P
t
as:
●
P
t
is convergent when
●
P
t
is oscillatory when
ò
| Writer | Writer Name | Amount | Client Comments & Rating |
|---|---|---|---|
ONLINE |
Instant Homework Helper |
$36 |
She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up! |
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
Custom Original Solution And Get A+ Grades
| Writer | Writer Name | Offer | Chat |
|---|---|---|---|
ONLINE |
Study MasterI find your project quite stimulating and related to my profession. I can surely contribute you with your project. |
$55 | Chat With Writer |
ONLINE |
Chartered AccountantAfter reading your project details, I feel myself as the best option for you to fulfill this project with 100 percent perfection. |
$65 | Chat With Writer |
ONLINE |
Phd WriterAs an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients. |
$54 | Chat With Writer |
ONLINE |
Top Grade TutorI reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade. |
$52 | Chat With Writer |
ONLINE |
Exam AttempterI will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points. |
$53 | Chat With Writer |
ONLINE |
Top Academic TutorI am a PhD writer with 10 years of experience. I will be delivering high-quality, plagiarism-free work to you in the minimum amount of time. Waiting for your message. |
$77 | Chat With Writer |
Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.