A market comprised of a downward-sloping demand curve that intersects an upward-sloping supply curve is said to be stable because:
A)price will never change.
B)quantity will never change.
C)demand will never change.
D)at any price other than equilibrium, forces in the market move price towards the equilibrium.

Question

Quizplus · Accepted Answer

A market with a downward-sloping demand curve and an upward-sloping supply curve is said to have a stable equilibrium price and quantity. This means that at any price other than the equilibrium price, market forces such as excess supply or demand will push the price towards the equilibrium. Therefore, the market is considered stable.

A Market Comprised of a Downward-Sloping Demand Curve That Intersects