The demand and supply functions for cobweb model are given as:
\(Q_t^d=19-6 P_t \text { and } Q_t^s=6 P_{t-1}-5\)
Choose the right answer related to intertemporal equilibrium price and the nature of the equilibrium.
1
P̅ = 2, explosive oscillation
2
P̅ = 2, uniform oscillation
3
P̅ = 3, damped oscillation
4
P̅ = 3, uniform oscillation