Question

Suppose that the price of a commodity after x years is given
by f(x) = Aekx where A and k are constants. )
1. Find A and k when f(0) = 4 and f0(0) = 1. In this case, what is the
price after 5 years? (Do not solve for e^x or ln(x))
2. We assume now that A = 4 and k = 0:25. When the price has in-
creased to 18, it becomes controlled so that the annual price increases is
limited to 10%. When the price controls first needed? What length of
time is needed for the price to double before and after price control are
introduced? (Do not solve for e^x or ln(x))

Answer 1

Answer:

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