Assuming v() = 60 and yo = 0, solve the system of difference equations and plot y, and x, against t for t = 0, 1, 2, 3.4. 5.
7. Two rival retailers each adopt a price-setting strategy of setting price today 10% lower than its rival's price yesterday. Write out the system of difference equations for the two prices, calling retailer l's price y and retailer 2's price x. Solve the system assuming that yn = .to. Show that prices converge to zero.
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