Question: Consider the mapping Q : P P, where the ith coordinate mapping of Qis max[0, pi + piZi (p)] Qi (p) := := N

Consider the mapping Q : P P, where the ith coordinate mapping of Qis max[0, pi + piZi (p)] Qi (p) := := N max[0, p; + pjZ;(p)]* Assume that Walras' Law holds as an equality, p (p) = 0. . A. Show that every competitive equilibrium price vector p is a fixed point of Q. B. Show that every vertex of the price simplex P is also a fixed point of Q. C. Suppose p*= Q(p*) is a fixed point of Q(.). Does this prove that the economy has a competitive equilibrium?

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