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  3. suppose that the rate of change of the price "x "

Suppose that the rate of change of the price "x " of a good increases in...

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Advance Math

Suppose that the rate of change of the price "x " of a goodincreases in the
time at a constant ratio "c" as a result of inflation
constant, at the same time falls proportionally to thedifference
between supply "y" at time "t" and some equilibrium supply "y0",is
say x´ (t) = c - a (y - y0). It is also assumed that the exchangerate
of the offer is proportional to the difference between the priceand some
equilibrium price "x0", that is y´ (t) = b (x - x0), where "a" and"b" are
positive proportionality constants. Assuming that in
t = 0, x = x0 and y = y0.

i) Do the price and / or the offer oscillate around x0 and y0 +c / a,
respectively?

ii) If at time t = T0 the price is maximum, at what time is thesupply
maximum?

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