Analyze the dynamic path of pork prices, Mathematics

Assignment Help:

A well-known simple model, applicable for analysing boom-bust cycles in agriculture, but extendable to analysing boom-bust cycles in many different areas of economics is the hog cycle model. As the name suggests, the origin of the model discussed here was in analysing the demand and supply for hogs.

The model consists of the following equations: where B is a demand shifter (e.g. the price of bacon and other pork products) and F is a supply shifter (e.g. the price of food for the hogs).

Qdt = B - Pt

Qst = -F +0.5Pt-1

a) Find the price Pt that solves above model.

b) Find the homogenous, particular and then general solution for this difference equation i.e. for Pt.

c) Setting t = 0 find the solution to the Hog-Cycle model.

d) Analyze the dynamic path of pork prices by finding first the steady state value of prices, and then by assigning initial values to P0 =5 and (F + B) = 15 study the evolution of prices.


Related Discussions:- Analyze the dynamic path of pork prices

Find the sum of first 40 positive integers, Find the sum of first 40 positi...

Find the sum of first 40 positive integers divisible by 6 also find the sum of first 20 positive integers divisible by 5 or 6. Ans:          No's which are divisible by 6 are

Calculate area of a square, The area of a square is given by the formula wi...

The area of a square is given by the formula width time's height. But since the square has all the sides equal, the height is of the same measure as its width. Hence its formula is

Binimial, theory behind the greatest term in the binomial expansion

theory behind the greatest term in the binomial expansion

Computing change for a given coin system, This problem involves the questio...

This problem involves the question of computing change for a given coin system. A coin system is defined to be a sequence of coin values v1 (a) Let c ≥ 2 be an integer constant

Commercial, The C.P. of 20 articles is same as theS.P. of x articles.Articl...

The C.P. of 20 articles is same as theS.P. of x articles.Article profit is 25%.Find x

Shares and dividends, A man invests rs.10400 in 6%shares at rs.104 and rs.1...

A man invests rs.10400 in 6%shares at rs.104 and rs.11440 in 10.4% shares at rs.143.How much income would he get in all?

Calculus, application of radious of curvatur

application of radious of curvatur

Answer, #questi0+50x1-60-60x0+10on..

#questi0+50x1-60-60x0+10on..

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd