147k views
0 votes
Why do only relative prices matter in general equilibrium?

User Takenia
by
8.0k points

1 Answer

4 votes

Step-by-step explanation:

The more the relative price the more demand, the less relative price the less demand, in general equilibrium we can take a good and set its price to 1.

User Mariomc
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories