Analyzing Market Price Equilibrium Dynamics with Differential Equations: Incorporating Government Intervention and Market Forces
Keywords:
Analysis, differential equation,, market price,, equilibrium dynamics, interventionsAbstract
This study seeks to investigate price stability in a dynamic market, where prices are subject to sudden impacts akin to those observed during the Covid-19 lockdown in 2020, as well as other influences introduced naturally or by price regulatory agencies. By examining functions derived from price observations, changes in prices, and changes in the rate of price changes, the study analyzes their stability amidst various influences. These influences are incorporated by examining factors affecting supply and demand quantities, which are modelled using a second-order linear differential equation; P^'' (t)+〖a_1 P〗^' (t)+a_0 P(t)=f(t). This study builds upon the research of Espinoza and Bob Foster, who analyzed a second-order differential equation with a constant inhomogeneity. It employs matrix methods to assess the stability of systems of differential equations. To analyze impulsive price changes modelled using the Dirac delta function and persistent price changes modelled with Heaviside's unit step function, the Laplace technique and its general inversion formula are applied. The study identifies conditions under which stability in the system can be maintained.
Most read articles by the same author(s)
- Bright Adinchezo Adimoha , James Nwawuike Nnadi, Bright Okore Osu, Franca Amaka Nwafor, A Mixed Boundary Value Problem for a Finite Isotropic Wedge Under Antiplane Deformation , Communication In Physical Sciences: Vol. 11 No. 4 (2024): VOLUME 11 ISSUE 4
- Augustine Osondu Friday Ador, Isaac Mashingil Mankili, Franka Amaka Nwafor, Silas Abahia Ihedioha, Bright Okore Osu, Analyzing Market Price Equilibrium Dynamics with Differential Equations: Incorporating Government Intervention and Market Forces , Communication In Physical Sciences: Vol. 11 No. 4 (2024): VOLUME 11 ISSUE 4
- Bright Okore Osu, Prisca Udodiri Duruojinkeya, The Modeling of the Worth of an Asset Using a Skew Random Pricing Tree , Communication In Physical Sciences: Vol. 10 No. 1 (2023): VOLUME 10 ISSUE 1
Similar Articles
- Humphrey Sam Samuel, Emmanuel Edet Etim, John Paul Shinggu, Bulus. Bako , Machine learning of Rotational spectra analysis in interstellar medium , Communication In Physical Sciences: Vol. 10 No. 1 (2023): VOLUME 10 ISSUE 1
- Eno John, Promise Asukwo, Nkem Ogbonna, Convergence Analysis of Sinc-Collocation Scheme With Composite Trigonometric Function for Fredholm Integral Equations of the Second Kind , Communication In Physical Sciences: Vol. 11 No. 3 (2024): VOLUME 11 ISSUE 3
- Promise A. Azor, Edikan E. Akpanibah, Okechukwu I. Edozieunor, Closed Form Solutions of a Re-Insurer’s Surplus, Stochastic and Time-Dependent Investment Returns with Random Parameters , Communication In Physical Sciences: Vol. 11 No. 1 (2024): VOLUME 11 ISSUE 1
- Eno John , Promise Asukwo, Nkem Ogbonna, Convergence Analysis of Sinc-Collocation Scheme With Composite Trigonometric Function for Fredholm Integral Equations of the Second Kind , Communication In Physical Sciences: Vol. 11 No. 3 (2024): VOLUME 11 ISSUE 3
- Akaezue Nelson Nwagbogwu, Ngiangia Alalibor Thompson, Onyeaju Michael Chukwudi, Thermal Properties of Diffusing Species into Some Host Metals , Communication In Physical Sciences: Vol. 11 No. 4 (2024): VOLUME 11 ISSUE 4
- Onanuga Omotayo Aina, Titus Morrawa Ryaghan, Bello Musa Opeyemi, Momoh Daniel Clement, Goat Horn Biochar as a Low-Cost Adsorbent for the Removal of Cadmium and Zinc ions in Aqueous Solution , Communication In Physical Sciences: Vol. 10 No. 3 (2023): VOLUME 10 ISSUE 3
- Asishana Paul Onivefu, Temperature Programmed Desorption Approach in Understanding the Development of Semiconductors and Catalyst , Communication In Physical Sciences: Vol. 10 No. 1 (2023): VOLUME 10 ISSUE 1
- Irene Edem Johncross, Fanifosi Seyi Josiah, Abidemi Obatoyinbo Ajayi, Resource recovery from Sugar Cane Biomass for the Synthesis of Silicon Nanoparticles , Communication In Physical Sciences: Vol. 12 No. 1 (2024): VOLUME 12 ISSUE 1
- Bertha Onyenachi Akagbue, Mark Ndako Ibrahim, Oseigbovo Favour Ofure, Oluwaiye Unity Ekugbe, Onah Kyrian, Chibuzor Titus Amaobichukwu, Mu’awiya Baba Aminu, Pam Dajack Dung, Suleiman Isa Babale, Sadiq Mohammed Salisu, Comprehensive Assessment and Remediation Strategies for Air Pollution: Current Trends and Future Prospects; A Case Study in Bompai Industrial Area, Kano State, Nigeria. , Communication In Physical Sciences: Vol. 10 No. 1 (2023): VOLUME 10 ISSUE 1
- Yusuf Mohammad Auwal, Hussaini Shuaibu, Muhammad Sani Isa, Study of Symmetric Nuclear Matter Properties in Non-linear Walecka Model via Relativistic Mean-field approximation at zero-temperature , Communication In Physical Sciences: Vol. 12 No. 2 (2025): VOLUME 12 ISSUE 2
You may also start an advanced similarity search for this article.