Can there the stable equilibrium if demand and supply curves are negatively sloping?
⇒Yes, there can be stable equilibrium if demand and supply curves are negatively sloping.
Provide that the supply curve in striper than the demand curve.
In the table, given the negatively sloped demand curve D and supply curve S, where S is more supply than D, the original equilibrium is determined at R where demand and supply are equal and the equilibrium price is OP0. If this equilibrium gets disturbed and price rises to OP1, demand falls shorts of supply and excess supply lowers the price back to OP0. On the opposite, if the disturbance from equilibrium result, in a lower price OP2, there is excess of demand over supply at this price. Constantly, price rises again to OP0 and the stable equilibrium at R is restored.
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