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{"ops":[{"insert":"Mrs. Patricia Banda is the owner-manager of a small restaurant specializing Zambian tradition\u00a0 cuisine. The daily demand and supply schedules are given below, over the relevant ranges of \ud835\udc43 and\u00a0\n\ud835\udc44.\n\n\ud835\udc44"},{"attributes":{"script":"super"},"insert":"D"},{"insert":"= \ud835\udc43"},{"attributes":{"script":"super"},"insert":"2 "},{"insert":"\u2212 175\ud835\udc43 + 7500\n\ud835\udc44"},{"attributes":{"script":"super"},"insert":"S"},{"insert":"= \ud835\udc43"},{"attributes":{"script":"super"},"insert":"2"},{"insert":" + 25\ud835\udc43 \u2212 1250\n\nMrs Banda does not identify the equilibrium price from the onset, instead, she starts from some\u00a0\narbitrary price and continues to make daily adjustments depending on the surplus or deficit from the previous day. That is, the price adjustment is given by\n\n"},{"attributes":{"italic":true},"insert":"dp/dt "},{"insert":"= 0.01 (\ud835\udc44"},{"attributes":{"script":"super"},"insert":"D"},{"insert":" \u2212 \ud835\udc44"},{"attributes":{"script":"super"},"insert":"s"},{"insert":")\n\na. Find the long run equilibrium price, \ud835\udc43"},{"attributes":{"script":"super"},"insert":"*"},{"insert":"\n\nb. If price is initially 20, deduce an equation for price, \ud835\udc43, at time \ud835\udc61.\n\nc. Comment on the behaviour of price P in the near future.\n\nQuestion Three\u00a0\nGiven the production function \ud835\udc44 = \ud835\udc3e"},{"attributes":{"script":"super"},"insert":"3"},{"insert":" + 3\ud835\udc3f"},{"attributes":{"script":"super"},"insert":"2"},{"insert":",\n\na. Describe the behaviour of the marginal productivity of labour as more capital is added.\n\nb. what is the marginal rate of technical substitution between capital and labour?\n"}]}

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