Analyze the dynamic path of pork prices, Mathematics

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.

Posted Date: 3/23/2013 3:34:32 AM | Location : United States







Related Discussions:- Analyze the dynamic path of pork prices, Assignment Help, Ask Question on Analyze the dynamic path of pork prices, Get Answer, Expert's Help, Analyze the dynamic path of pork prices Discussions

Write discussion on Analyze the dynamic path of pork prices
Your posts are moderated
Related Questions
Determine or find out the direction cosines and direction angles for a = (2, 1, -4) Solution We will require the magnitude of the vector. ||a|| = √ (4+1+16) = √ (21)

Linear Equations We'll begin the solving portion of this chapter by solving linear equations. Standard form of a linear equation: A linear equation is any equation whi

ABC is a right-angled isosceles triangle, right-angled at B. AP, the bisector of ∠BAC, intersects BC at P. Prove that AC 2 = AP 2 + 2(1+√2)BP 2 Ans:    AC = √2AB (Sinc


If the M-th term of an Ap is n andn-th term M.find the p-th term


On a picnic outing, 2 two-person teams are playing hide-and-seek. There are four  hiding locations (A, B, C, and D), and the two members of the hiding team can hide separately in a

if the diametre of the cylinder is 3.6 foot and its length is4.6foot,then its dimension is?

The two sides of a triangle are 17 cm and 28 cm long, and the length of the median drawn to the third side is equal to 19.5 cm. Find the distance from an endpoint of this median to

A rescue and ?re squad places a 15 ft ladder against a burning building. If the ladder is 9 ft from the base of the building, how far up the building will the ladder reach? a. 8