Mathematics for Economists

Phase diagram in on dimension.

Let

x^0 =x( 1 x).

-0.5 0 0.5 1 1.5

0.25

0

-0.25

-0.5

-0.75

x

y

x

y

It has two equilibriumx=0 andx= 1 .x=0 is instable,x=1 is stable.