using edgeworth box diagram explain general equilibrium of a pure exchange economy
Answers
Answer:
No excess demand or supply for any good. This is a market equilibrium, competitive equilibrium, Walrasian equilibrium, etc: Each consumer choosing his most preferred bundle given prices and his initial endowment. All choices are compatible so that demand equals supply.
Answer:When the auctioneer gets the price ratio correct, the market clears. No excess demand or supply for any good. This is a market equilibrium, competitive equilibrium, Walrasian equilibrium, etc: • Each consumer choosing his most preferred bundle given prices and his initial endowment.
Explanation:Rational economic exchange also called goods exchange economy is an economic transaction where goods or services are transferred from the provider for a return of relative value (compensation) from the receiver in a manner that advances the economic interests of both parties.