= Quantity supplied at time t
= Quantity demanded at time t
= Price of good at time t
= -Pt +2Pt-1
= 50 – 0.5Pt
The market is in equilibrium
I am asked to find the price path for Pt if P0 = 30
Im a little unsure as to whether I’ve plugged the right info into the formula
Rearranging that I get
Therefore I get
I’m unsure as to whether I’ve actually done this correctly, as my understanding on this isn’t that great, any help would be very much appreciated.