Given demand function: Qdt = 1200 − 6Pt

At equilibrium, $Qd_t = Qs_t$ and $P_t = P_{t-1} = P_e$.

The equilibrium price is N90.

Using the demand equation:

The equilibrium quantity is 660 units.

The equilibrium condition of the market is:

• Equilibrium Price ($P_e$): $\boxed{\text{N}90}$
• Equilibrium Quantity ($Q_e$): $\boxed{660 \text{ units}}$

Rearrange the equation to express $P_t$ in terms of $P_{t-1}$:

The dynamic equation is in the form $P_t = A + \lambda P_{t-1}$, where $\lambda$