Walras' law states that, if there is more than one market each with many perfectly informed buyers and sellers:
A)and if one is in equilibrium, the others are also in equilibrium.
B)no one will offer a price above the reservation price.
C)a competitive equilibrium will result.
D)and if all but one is in equilibrium, the other is in equilibrium.

Question

Quizplus · Accepted Answer

Walras' law implies that if all markets but one are in equilibrium, then the remaining market must also be in equilibrium. This is because the sum of the excess demands across all markets must equal zero if the economy is to be in general equilibrium.

Walras' Law States That, If There Is More Than One