Fig. 3. Change in the conditions as a function of the simple dynamic model, At+4 = h[m{g[f(At)]}]. We assume nonlinear response for at least one of the functions in the composed function.

a. Repeat of Figure 1b with the colored equilibrium points corresponding to the colored functions in part b (where the function crosses the 45 degree line is an equilibrium point).

b. Four examples of the dynamic model, color coded to correspond to the colors of the equilibria in part a. The abcissa is the initial state of the system (this could be either commodity price or amount produced) and the ordinate represents the state of that system four projections into the future. The 45 degree line represents the locus of points for which there will be no change over the four unit projection, thus an equilibrium point is located where the function crosses that line.

Fig. 3