Assume That the Rate of Change of the Unit Price

question 42

Short Answer

Assume that the rate of change of the unit price of a commodity is proportional to the difference between the demand and the supply so that ​ where k is a constant of proportionality. Suppose that D=74-5p, S=2+3p, and p(0)=2. Find a formula for p(t).

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Definitions:

Provision

A provision is an amount set aside in the financial statements to cover a future liability or loss.

Dollar Amount

A specific quantity of money expressed in the currency of the United States, represented by the dollar symbol ($).

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

U.S. GAAP

United States Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S.