68. Given the Market model with Demand and supply functions as under D= ap,+b a <0 SAPt-1+B A>0 The condition for stable equilibrium here will b (2) laA (4) A (1) a < A (3)
Option (3) is correct.
Equilibrium in the market is said to be stable when -
1. D is downward sloping and S is upward sloping, or
2. Both D and S are downward sloping, but supply ...