T stands for the current period, and t- 1 stands for the previous period.

Demand: Dt=a-bPt. . . . . . . . . ( 1)

Supply: St=-c+dPt- 1. . . . . . . (2)

The demand curve is determined by the data of 199 1 and 1992: dt = 45-2.5pt

Pass the price 199 1 and output1992; The price of 1992 and the output of 1993 determine the supply curve: ST =16+1.5pt-1.

B=2.5, d= 1.5, b>d, the demand curve is flatter than the supply curve, and the fluctuation of price and output will gradually decrease and tend to balance.

Stable equilibrium rate of return (1)(2), Dt=St, and get the first-order difference equation about price.

bPt + dPt- 1 =a+c

Solve;

pt=[p0-[(a+c)/(b+d)]][-d/b]^t+(a+c)/(b+d)

If the temperature is unstable, it depends on the solution of the difference equation. For this solution, it is obvious that if b> has a limit at point D, the limit is (a+c)/(b+d), which is the equilibrium price. Then bring the data in and do the math yourself.