In an exchange economy with only two goods, Walras's law implies that:
A) both markets cannot be simultaneously in equilibrium.
B) if one market is in equilibrium then the second one must be in equilibrium too.
C) the two markets can be in equilibrium only when indifference curves are smooth and convex.
D) net supply equals net demand at all times.
Correct Answer:
Verified
Q30: In an exchange economy, the Walrasian auctioneer
Q31: In an Edgeworth box, a segment on
Q32: Net demand is:
A)the difference between what consumer
Q33: In an exchange economy with production, which
Q34: Pareto optimality in an exchange economy with
Q36: Walrus Law states that:
A)supply creates its own
Q37: The MRT is the absolute value of
Q38: An Edgeworth Box diagram:
A)can be used to
Q39: In an Edgeworth Box, intersections between indifference
Q40: The doctrine of natural identity of interest
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents