Walras' Law Tells Us That

question 64

Multiple Choice

Walras' Law tells us that,:

• A)supply will always equal demand.
• B)if an economy has five markets and if supply equals demand in three of those markets, then supply will equal demand in the other two markets.
• C)the prices in an N market economy can be determined for all N markets.
• D)if an economy has five markets, then a general equilibrium analysis will yield the prices in four of the markets relative to the price in the fifth market.

---

Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving a risk or uncertainty.

Probability

Measurement of a degree of uncertainty, expressed as a number between 0 and 1.

Framing

The way information is presented or structured, which can influence perception and decision-making.

Losses

The negative outcomes or reductions experienced in various contexts, such as finance, personal well-being, or competitions.