Repository created to study relationship between supply and demand
An economist is interested in the price variation of a single product called. It is observed that a high price for the product in the market attracts more suppliers. However, increasing the of the product supplied tends to lower the price. Over time, there is an interaction between price and offer. The economist proposed the following model, where P_n represents the price of the product in month n and Q_n represents the amount. Find the equilibrium values for this system
Does the model make sense intuitively? What is the meaning of constants 100 and 500? Explain the meaning of the constants 0.1 and 0.2.