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Paper 1 · November 2010 · Demand and Supply

A stable equilibrium position is one in which

Athere are endless fluctuations.
Bthere are only two forces influencing the equilibrium position.
Cthere are never any departures from the equilibrium position.
Dany departure from the equilibrium position calls into play forces which tend to restore that position.

Explanation

By definition, a stable equilibrium is one where any departure from equilibrium sets in motion forces that restore it.

ZIMSEC Economics Paper 1, November 2010, Q7

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