Asked by Matthew Bahramian on May 09, 2024

verifed

Verified

From Walras's law it follows that in a market with two goods, if demand equals supply in one market, then demand must equal supply in the other market.

Walras's Law

A principle in general equilibrium theory stating that if all markets but one are in equilibrium, then the remaining market must also be in equilibrium.

  • Identify the distinctions between partial and general equilibrium analyses.
verifed

Verified Answer

SH
Sheridan HarrisMay 15, 2024
Final Answer :
True
Explanation :
This is the definition of Walras's law, which states that if there is market equilibrium in one market, then there must be market equilibrium in all other markets.