Both economists and mathematicians have shown there exists at least one set of prices that will clear all markets in a system simultaneously, known as equilibrium price.

Question

Quizplus · Accepted Answer

This statement refers to the fundamental theorem of welfare economics, which asserts that under certain conditions, competitive markets (i.e., where many buyers and sellers interact) will tend to a general equilibrium where supply equals demand in every market, thus clearing the market. This concept is foundational in both economics and mathematical economics, demonstrating the existence of an equilibrium price vector that clears all markets simultaneously.

Both Economists and Mathematicians Have Shown There Exists at Least