Prawo Walrasa i Równowaga Rynkowa

Walras' Law and Market Equilibrium

• Walras' Law states that in a market with two goods, if supply equals demand in one market, then demand must equal supply in the other market.
• This principle is fundamental to general equilibrium theory, implying a necessary interdependence between markets.
• The law arises from the accounting identity of all markets taken together.
• In a two-good model if the total excess supply on one market equals zero, the total excess supply on the other market must also equal zero which means in the other market supply must equal demand.
• This is analogous to a system of equations: if one equation is already satisfied, understanding the interplay between goods, the remaining market can also be fulfilled.
• The principle highlights the interconnected nature of markets, implying equilibrium in the overall system.
• Walras' Law does not determine the equilibrium prices or quantities, but rather establishes a necessary condition for equilibrium to occur.
• It merely indicates that if the supply equals demand in one market when all markets are in equilibrium, everything will balance out.
• The condition is mathematically derived from the aggregation of markets in an economic model.