Sweden's 1967 Switch to Right-Hand Traffic

Stable Equilibrium

Unstable Equilibrium

For generations, all commuters in a city have used the 'North Bridge' to cross a river, leaving the identical 'South Bridge' almost empty. There is no toll, law, or physical barrier that prevents using the South Bridge. Which statement best analyzes why this traffic pattern is a self-perpetuating state?

Market Adoption Failure

Social Conventions as Equilibrium

In a community, two new, equally effective but incompatible messaging apps, 'ConnectApp' and 'TalkNow,' are introduced. After an initial period of mixed usage, nearly everyone adopts 'ConnectApp,' and 'TalkNow' falls into disuse. Which of the following statements provides the most robust evaluation of why the widespread adoption of 'ConnectApp' represents a self-perpetuating equilibrium?

Consider a town where, by long-standing custom, all shops close on Wednesdays. There is no law requiring this closure. This situation is not a true self-perpetuating equilibrium because any single shop owner could gain a significant advantage by choosing to stay open.

Evaluating the Stability of Social and Technical States

Each of the following describes a stable or recurring situation. Which one of these is LEAST likely to be considered a self-perpetuating equilibrium?

Match each scenario with the statement that best describes the nature of its stability.

A community has long used a standard, but inefficient, technology. A new, more efficient but incompatible technology is introduced. Arrange the following events in the logical order that describes the transition from the old, stable state to a new one.

The Persistence of an Inefficient Standard

Stable Equilibrium

Stabilizing Negative Feedback of Arctic Sea Ice

A city's housing market is in a state of balance with stable rental prices. A large company suddenly opens a new headquarters in the city, causing a rapid influx of new residents and driving average rental prices up. Which of the following scenarios best illustrates a process that would counteract this initial price increase and push the market back toward a stable state?

Market Price Stabilization

Imagine the global market for coffee beans is in a stable state. A new health study is published that dramatically increases consumer demand for coffee, causing the price of coffee beans to rise sharply. Arrange the following events in the correct sequence to illustrate the process that would counteract this initial price shock and push the market back towards a stable, long-term price level.

Labor Market Stabilization

Analyzing Economic Stability Mechanisms

A home thermostat is set to 70°F. When the room temperature rises to 72°F, the thermostat activates the air conditioning to cool the room back down. This process is an example of a system that amplifies the initial temperature change.

In any stable system, an initial change often triggers a counteracting response that pushes the system back toward its original state. For each economic scenario described below, match the initial change with the most likely counteracting response that would work to restore balance.

In a stable ecosystem, a sudden increase in the predator population leads to a decrease in the prey population. This reduction in the food source then causes the predator population to decline, allowing the prey population to recover. This entire cycle is a self-correcting process where the initial disturbance is ultimately ________, pushing the system back towards its original balance.

A balancing process is one where an initial change in a system triggers a response that counteracts the original change, pushing the system back toward a stable state. Which of the following scenarios does NOT describe such a balancing process?

In a competitive market for a popular new type of gadget, the first company to market enjoys unusually high profits. This success attracts several new companies to enter the market with similar products. Which statement best analyzes the process that works to stabilize profits in this market over the long term?