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.
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.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
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!['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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3614a9ba-5d2e-463c-b206-803d5163a55b%2F15556a3c-5607-46d3-b29d-d7f96d7fcbbf%2Fledz8lf_processed.jpeg&w=3840&q=75)
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.
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