Consider an exchange economy with 258814 people and 14512 goods and assume each good is traded...

Consider an exchange economy with 258814 people and 14512 goods and assume each good is traded under perfectly competitive conditions. How many equations must be solved to find the (general) equilibrium in this economy?

Expert Solution

N - 1 equations are required to be solved in the general equilibrium where N is number of people in the economy. So, N - 1 = 258814 - 1 = 258813 equations must be solve to find the general equilibrium.

Rahul Sunny answered 2 years ago

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