On page 43 of Schweser notes, it indicateds that unstable market equilibria result when a downward sloping supply curve is less teeply sloped than the demand curve, so that excesss supply tends to drive prices up and excess demand tend to drive prices down (further away from equilibrium
Can anyone confirm the second part where excess supply tends to drive prices up? I believe in unstable market equilibria, excess supply would push prices down, further away from equilibrium, and excess demand pushing prices upward.
Thanks in advance. |