Ritu posted an Question
May 24, 2020 • 04:59 am 30 points
  • UGC NET
  • Economics

If k - 1 markets are in equilibrium then what condition prevailed in the market for good

if K - 1 markets are in equilibrium then what condition prevailed in the market for good

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  • Vivek babbar Best Answer

    if there are market for k goods, then we only need to find a set of prices where k-1 of market are in equilbrium because walras law implies that market for good k will automatically have demand equal to supply in perfect competition market In other word if we find a set of prices where the demand for good 1 equal to supply of good 1, we are guranteed that demand for good 2 must equal to supply of good 2

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