Convergence to Equilibrium
- Author:
- schwe227
Equilibrium, and convergence to **equilibrium**.
Start today at price above equilibrium (point E), this leads to Q_s > Q_d (or surplus), point (G), which drives tomorrow prices down -- everything else remaining equal -- on this market to point (H), then we have Q_s < Q_d (or shortage), which pushes prices ________ (up / down) for the following day ...