give example for a static mathematical model?

Expert Solution

We look at the case of static mathematical model from industry. In marketing a commodity generally

there is a balance between supply and demand. Both factors depend on price. Demand for the commodity

will be low when the price is high and it will increase as the price drops. If we take the simplistic linear

case the relationship between demand (Q) and price (P) might be represented by the straight line.

Fig: (a) Linear Market Model

Let us model this situation mathematically. If we denote price by P, supply by S and demand by D, and

assuming the price equation to be linear we have

D = a-bP

S = c + dP

S = D

In the above equations, a, b, c, d are parameters computed based on previous market data. Equation S

D says supply should be equal to demand so that market price should accordingly be adjusted. Let us

take values of a = 500, b = 2000, c = —50 and d =1500. Value of c is taken negative, since supply cannot

be possible if price of the item is zero. In this case no doubt equilibrium market price will be

milcah answered 6 months ago

7. Give an example in which a static time-series model might be appropriate. Briefly explain why...

7. Give an example in which a static time-series model might be appropriate. Briefly explain why it is appropriate. 8. Give an example in which a static time-series model would not be appropriate. Write down a dynamic model that would deal with the shortcomings of the failed static model. 9. Why are dynamic models with lagged dependent variables biased with OLS? Which of our assumptions do they violate? To answer this question, write out an ADL(1,0) model for time t...

Explain what it means for an assignment model to be balanced. Give detailed mathematical examples.

give an example of a function of several variables, but without using a mathematical formula. Can...

give an example of a function of several variables, but without using a mathematical formula. Can you think of a real life example of something which depends on two, three, or more things? Dont use textbook examples. This is more of a concept type of question. Please write in complete sentences

Describe a problem that can be solved by using the shortest-route model. Give a detailed mathematical...

Describe a problem that can be solved by using the shortest-route model. Give a detailed mathematical example.

1. What are mathematical inductions? Discuss each and give example in your discussion. 2. What is...

1. What are mathematical inductions? Discuss each and give example in your discussion. 2. What is a direct proof? Explain. 3. What is a proof of a contradiction? Discuss.

Give an example on the institutional difference between the Anglo-Saxon model and the European model, and...

Give an example on the institutional difference between the Anglo-Saxon model and the European model, and discuss how the difference affects the economic performance for these two models.

Give example for Delivery gap model and internal communication model of service quality in relation to...

Give example for Delivery gap model and internal communication model of service quality in relation to patient satisfaction. ( explain in detail with specific example for each in healthcare industry.)

A. What is the “Fluid Mosaic Model” of biological membranes and give an example as to...

A. What is the “Fluid Mosaic Model” of biological membranes and give an example as to why it is critical for cellular function? B. What is homeoviscous adaptation? Why is it important for an organism? What strategies do organisms use to accomplish it?

Give an example of an endogenous variable in a multiple regression model. Explain

1. One of the multiattribute models is the attitude-toward- behavior model. Explain the model and give an example.

1. One of the multiattribute models is the attitude-toward- behavior model. Explain the model and give an example.2. What is cognitive dissonance and when does it happen?3. Why is humor used so frequently in advertisements? In your response, include evidence from research studies on using humor in advertising.

Question