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Question: The demand and supply functions in a competitive market are
Qd = 280 - 4P and Qs = -35 + 8P
and price is currently 19. When not at equilibrium the rate of adjustment of price is
dP = 0.28(Qd - Qs)dt
Derive and solve the relevant differential equation to get a function for P in terms of t and use the solution to explain how close price will be to its equilibrium value after seven time periods.
Your manager comes in with three sets of proposals for a new production process. Each process employs three inputs: land, labor, and capital.
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Expected changes in supply and demand
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