In general equilibrium model, why only relative prices matter following from the fact that individual demand and
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Question:
In general equilibrium model, why only relative prices matter following from the fact that individual demand and supply functions are all homogenous of degree 0 in all prices and hence the excess demand functions, derived by aggregating these individual functions also have this property
More broadly, what is the intuition of homogeneity of degree zero in microeconomics?
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