Question 4 In a two-good two-consumer economy, which statement is true? Walras Law implies that the total demand for either product cannot exceed the total endowments of either good. Walras Law implies that if one market has excess supply, the other market also has an excess supply O None of the other answers are correct. Walras Law implies that if one market has an excess demand, the other market must also have an excess demand Walras Law implies that the competitive market equilibrium will be pareto efficient.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Asap

'Question 4
In a two-good two-consumer economy, which statement is true?
Walras Law implies that the total demand for either product cannot exceed the total endowments of either
good.
Wakas Law implies that if one market has excess supply, the other market also has an excess supply.
O None of the other answers are correct.
Walras Law implies that if one market has an excess demand, the other market must also have an excess
demand
Walras Law implies that the competitive market equilibrium will be pareto efficient.
Transcribed Image Text:'Question 4 In a two-good two-consumer economy, which statement is true? Walras Law implies that the total demand for either product cannot exceed the total endowments of either good. Wakas Law implies that if one market has excess supply, the other market also has an excess supply. O None of the other answers are correct. Walras Law implies that if one market has an excess demand, the other market must also have an excess demand Walras Law implies that the competitive market equilibrium will be pareto efficient.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Simultaneous Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education