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Question
The supply and demand functions for a commodity are given in terms of the unit price at time . Assume that price changes at a rate proportional to the shortage , with the indicated constant of proportionality and initial price . In each exercise:
(a) Set up and solve a differential equation for .
(b) Fund the unit price of the commodity when .
(c) Determine what happens to the price as .
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
Step 1
1 of 4We are required to:
- (A) Generate the differential equation using the formula .
- (B) Determine the unit price at .
- (C) Determine the unit price at approaches to infinity.
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