Explain why an excess demand function, in the discussed model of a market of a single good

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Explain why an excess demand function, in the discussed model of a market of a single good with exogenously determined functions of supply and demand, is positively homogenous of degree 0 and satisfies Walras's law only for an equilibrium price.

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Microeconomics Static And Dynamic Analysis Springer Texts In Business And Economics

ISBN: 9783031105531

1st Edition

Authors: Krzysztof Malaga, Karolina Sobczak

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Question Posted: Jan 31, 2024 02:00 AM

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Explain why an excess demand function, in the discussed model of a market of a single good

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Excess demand function in a market model represents the difference between the total quantity demanded and total quantity supplied at a particular pri...View the full answer

Microeconomics Static And Dynamic Analysis Springer Texts In Business And Economics

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