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Consider a competitive market with L goods, N consumers and J firms. In this setting, assume that we find an equilibrium price vector p and
Consider a competitive market with L goods, N consumers and J firms. In this setting, assume that we find an equilibrium price vector p and equilibrium allocation (x1, x2 , . . . , x ; Y Y2, ..., y), where x; R for every consumer i and y; R for every firm j. Show that, if we were to scale price vector p to 2p*, where >0, then allocation (x, x2,..., XN; yi, y2, ..., yj) is still the equilibrium allocation.
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