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Commerce · Q813

Economics

Graduate and Post Graduate · Commerce · question 813

Q813

When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is

A.
stable in both Marshallian and Walrasian sense
B.
unstable in both Marshallian and Walrasian sense
C.
stable in the Marshallian sense but unstable in the Walrasian sense
Answer
D.
unstable in the Marshallian sense but stable in the Walrasian sense

Answer: Option C

Solution

Answer: Option C
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