Find All Equilibrium Points for the Following Coupled Equations

question 28

Multiple Choice

Find all equilibrium points for the following coupled equations. Identify each equilibrium point as stable or unstable.

• A) (0, 0)unstable; (1.33, 1.50)stable; (0.50, 0)unstable; (0, 1.25)unstable
• B) (0, 0)unstable; (0, 0.33)unstable; (0.50, 0)unstable; (0.50, 0.33)stable
• C) (0, 0)unstable; (0, 0.33)unstable; (0.50, 0)unstable; (1.33, 1.50)stable
• D) (0, 0)unstable; (0, 1.50)unstable; (1.33, 0)unstable; (0.50, 1.25)stable

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Definitions:

Leisure

Time utilized for enjoyment and relaxation, free from the obligations of work or serious responsibilities.

Substitution Effect

The change in demand for a good that results from a change in price, making the good more or less expensive relative to other goods.

Price Change

An alteration in the cost of a good or service, which can affect demand and supply dynamics in the market.

Substitution Effect

The change in consumption patterns due to a change in the prices of goods, leading consumers to replace more expensive items with cheaper alternatives.