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Consider the mapping Q:PP, where the i th coordinate mapping of Q is Qi(p):=j=1Nmax[0,pj+pjZ~j(p)]max[0,pi+piZ~i(p)] Assume that Walras' Law holds as an equality, pZ~(p)=0. A. Show
Consider the mapping Q:PP, where the i th coordinate mapping of Q is Qi(p):=j=1Nmax[0,pj+pjZ~j(p)]max[0,pi+piZ~i(p)] Assume that Walras' Law holds as an equality, pZ~(p)=0. A. Show that every competitive equilibrium price vector p0 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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