Skip to content

Commit

Permalink
Update cobweb.md
Browse files Browse the repository at this point in the history
  • Loading branch information
SylviaZhaooo committed May 7, 2024
1 parent 42c5e2b commit 08dc983
Showing 1 changed file with 2 additions and 2 deletions.
4 changes: 2 additions & 2 deletions lectures/cobweb.md
Original file line number Diff line number Diff line change
Expand Up @@ -326,7 +326,7 @@ m = Market()
plot45(m, 0, 9, 2, num_arrows=3)
```

The plot shows the function $g$ defined in {eq}`def_g` and the $45\degree$ line.
The plot shows the function $g$ defined in {eq}`def_g` and the 45-degree line.

Think of $ p_t $ as a value on the horizontal axis.

Expand All @@ -336,7 +336,7 @@ Clearly,

- If $ g $ lies above the 45-degree line at $p_t$, then we have $ p_{t+1} > p_t $.
- If $ g $ lies below the 45-degree line at $p_t$, then we have $ p_{t+1} < p_t $.
- If $ g $ hits the 45-degree line at $p_t$, then we have $ p_{t+1} = p_t $, so $ p_t $ is a {ref}` steady state <scalar-dynam:steady-state>`.
- If $ g $ hits the 45-degree line at $p_t$, then we have $ p_{t+1} = p_t $, so $ p_t $ is a steady state.

Consider the sequence of prices starting at $p_0$, as shown in the figure.

Expand Down

0 comments on commit 08dc983

Please sign in to comment.