{"id":59437,"date":"2024-04-16T01:37:09","date_gmt":"2024-04-16T01:37:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59437"},"modified":"2024-04-16T01:37:09","modified_gmt":"2024-04-16T01:37:09","slug":"when-both-the-demand-and-the-supply-curves-slope-downwards-and-the-demand-curve-is-steeper-than-the-supply-curve-the-equilibrium-is","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-both-the-demand-and-the-supply-curves-slope-downwards-and-the-demand-curve-is-steeper-than-the-supply-curve-the-equilibrium-is\/","title":{"rendered":"When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97097fadb65\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    stable in both Marshallian and Walrasian sense                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    unstable in both Marshallian and Walrasian sense                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    stable in the Marshallian sense but unstable in the Walrasian sense                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    unstable in the Marshallian sense but stable in the Walrasian sense                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: C. stable in the Marshallian sense but unstable in the Walrasian sense.<\/p>\n<p>In the Marshallian sense, stability refers to the ability of the market to return to equilibrium after a disturbance. In the Walrasian sense, stability refers to the ability of the market to reach equilibrium in the first place.<\/p>\n<p>When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is stable in the Marshallian sense but unstable in the Walrasian sense. This is because, if the market price is above the equilibrium price, the quantity demanded will be less than the quantity supplied, and the market price will fall. Conversely, if the market price is below the equilibrium price, the quantity demanded will be greater than the quantity supplied, and the market price will rise. However, if the market price is not at the equilibrium price, the market will not necessarily reach equilibrium. This is because, if the market price is above the equilibrium price, the quantity demanded will be less than the quantity supplied, but the suppliers will not be able to reduce their output immediately. As a result, the market price will remain above the equilibrium price for some time. Conversely, if the market price is below the equilibrium price, the quantity demanded will be greater than the quantity supplied, but the buyers will not be able to increase their demand immediately. As a result, the market price will remain below the equilibrium price for some time.<\/p>\n<p>In conclusion, the equilibrium is <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                  <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>   <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> stable in the Marshallian sense but unstable in the Walrasian sense. This is because, if the market price is above the equilibrium price, the quantity demanded will be less than the quantity supplied, and the market price will fall. Conversely, if the market price is below the equilibrium price, the quantity demanded will be greater than the quantity supplied, and the market price will rise. However, if the market price is not at the equilibrium price, the market will not necessarily reach equilibrium.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When both the demand and the supply curves slope downwards and the demand curve is steeper than the supply curve, the equilibrium is<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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