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Checking Walras's law Consider the following demand functions for a con- sumer facing K goods, and where p; denotes the price of goodi, and p_;
Checking Walras's law Consider the following demand functions for a con- sumer facing K goods, and where p; denotes the price of goodi, and p_; represents the vector of prices different from p;, that is, pi=(P1,p2, ... , Pil, PAl, ..., PA). State conditions under which these demand functions satisfy Walras's law. K a. Xi ( Pis P_i, W ) = - a; + B;w+ Pi j=1 K W b. xi(Pi , P_i, W) = - a; + B; log w + V YUP; . Pi i=1 C. xi (Pi , Pi, w) = - a; + B;w + yiwz). Pi
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