In a competitive pure exchange economy, if the total value of excess demand for all types of food is zero, then the total value of excess demand for all nonfood commodities must be zero.
Correct Answer:
Verified
Q9: A pure exchange economy is an economy
Q10: From Walras's law it follows that in
Q11: If two people have identical Cobb-Douglas utility
Q12: If there are consumption externalities, then a
Q13: If the initial endowment is on the
Q15: In a model with two consumers, two
Q16: Jack Spratt's utility function is U(F, L)=
Q17: In general equilibrium analysis, an allocation is
Q18: The second welfare theorem of economics states
Q19: Every allocation on the contract curve is
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