Asked by Matthew Bahramian on May 09, 2024
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.
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.
Learning Objectives
- Identify the distinctions between partial and general equilibrium analyses.
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