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Draw A Set Of Reaction Curves That Result In An Unstable Equilibrium
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The following graph shows a set of reaction curves that result in an unstable equilibrium. The blue curve represents the demand curve and the red curve represents the supply curve. The intersection of the two curves is the equilibrium point, which is unstable.
At the equilibrium point, the quantity supplied is equal to the quantity demanded. However, if the price of the good increases, the quantity demanded will decrease, while the quantity supplied will increase. This will cause the demand curve to shift to the left and the supply curve to shift to the right, resulting in an unstable equilibrium.