Walras law states that if N -1 markets are in equilibrium, then we can get equilibrium price / prices in :
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2 marksMicroeconomicsGeneral equilibrium and exchange economiesWalras' law, numeraire and relative pricesModerateabout 1 min
UGC-NET 2024 Question 78: General equilibrium and exchange economies
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Walras law states that if N -1 markets are in equilibrium, then we can get equilibrium price / prices in: (A) N^(th) market (B) 2N markets (C) N-3 markets (D) N-4 markets
General equilibrium and exchange economies has come up 69 times in 7 exams since 2004.
What this question tests
This question is on Walras' law, numeraire and relative prices, part of General equilibrium and exchange economies in Microeconomics.
Why one market clears automatically when the others do, and why only relative prices matter.
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