Mathematics, 17.03.2020 09:35 ariannawilder0210
The government of the Republic of Lemon Island plans to transform their lemon-based
economy into a tourism-based economy. They develop the following model to predict the
long-term effect of this transformation for the size of their economy y:
dy
dt = (A − Be−t/5
)y; A, B > 0.
(a) Find the general solution y(t) for this equation.
(b) The Republic of Lemon Island has a current economic growth of 2% per year and
the government expects the transformation to cause this growth rate to triple in
the long term. Explain why values A = 0.06 and B = 0.04 are a good choice to
approximate this behaviour.
(c) Using A = 0.06 and B = 0.04, find the particular solution y(t) assuming that the
size of the economy of Lemon Island before the transformation is $50 000 000, and
that the transformation causes the size of the economy to shrink by $10 000 000 at
t = 0.
(d) The size of the economy of Lemon Island without the transformation can be mod-
eled using the same equation with parameters A = 0.02 and B = 0.
In which year after the transformation will the size of the transformed economy
surpass the size of the economy without the transformation?
(e) Elections on Lemon Island are in five years time. The Lemon Island Polling In-
stitute (LIPI) predicts that the current government will only be re-elected, if the
growth rate of the economy is, by then, at least 4%. According to the first model,
can the current government expect to be re-elected?
Answers: 1
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The government of the Republic of Lemon Island plans to transform their lemon-based
economy in...
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